Great Britain Pound GBP

 

Detailed information and fundamental factors

Central Bank: Bank of England

Interest Rate: 0.50%

Public Debt to GDP Ratio, 2013: 91.1%

Trade Balance, 2013: $30.7 bln.

Inflation, 2013: 2%

Sovereign Credit Ratings:

Fitch
AA+
Stable
Moody's
Aa1
Stable
S&P
BBB+
Stable

Supporting Factors

Global reserve currency

medium

Currency of international trade

weak

Factors of Weakness

Economy is in stagflation

weak

The Great Britain pound sterling (usually called simply “pound” or “sterling”) is the currency used in the United Kingdom and in British territories. Banknotes were introduced following the creation of the Bank of England in 1694, but the history of the currency can be traced long before that, making the pound the oldest world currency that is still in use. The sterling was the most important currency in the world before the World War I. After the World War II had broken out, several countries (for the most part those that belonged to the British Empire) either introduced the pound as their own currency, or pegged their currencies to the sterling. These countries have become know as the sterling area. The importance of the UK currency and the sterling was diminished after the pound was allowed to float freely in 1972. Subsequently, the role of the major world medium of exchange passed to the US dollar. It is still the fourth most traded currency after the dollar, the euro and the yen. The pound is also used as a reserve currency.



Great Britain Pound News Archive

Pound Heads to Weekly Gains Despite Friday’s Drop

The Great Britain pound fell today despite better-than-expected macroeconomic data from the United Kingdom. Still, the currency was heading to a weekly gain against the euro and the Japanese yen, though it likely to end the week with losses against the US dollar.

Pound Higher After BoE Minutes

The Bank of England released minutes of its May policy meeting during the current trading session. While the Great Britain pound has been flat against the US dollar after the release, the currency gained on its other major rivals, including the euro and the Japanese yen.

Pound Slumps as Great Britain Enters Deflation

The Great Britain pound tumbled today as the United Kingdom has entered deflation for the first time in more than 50 years. The currency had been moving mostly sideways ahead of the report.

Deflation Sends the UK Pound Lower

After showing strength on the heels of the recent election in the United Kingdom, the pound is now weakening. The latest inflation data is in, and it appears that deflation is affecting the sterling.

Great Britain Pound Falls vs. Dollar, Retains Strength vs. Other Majors

The Great Britain pound pulled back from the six-month high against the US dollar as the greenback made a bounce. Still, the UK currency gained against other majors, including the euro.

Pound Retains Strong Upward Momentum

The Great Britain pound extended its move upward today, rising to the highest level since November against the US dollar and gaining versus the Japanese yen. Today’s economic data was supportive for the currency while yesterday’s news was not so much.

Sterling Remains Strongest with Help of Positive Data

The Great Britain pound continued to rally to new highs today, following yesterday’s strong performance, thanks to the positive macroeconomic data from the United Kingdom. In fact, the sterling is the strongest major currency so far this week.

Pound Stronger After BoE Refrains from Action Again

The Great Britain pound rallied today against its major rivals following the decision by the Bank of England to leave its monetary policy unchanged. Such decision was widely expected as the central bank did not make any changes to the policy since 2009.

Conservative Win Propels UK Pound Higher

UK pound is surging today, thanks to the probable win for the Conservatives. It looks as though David Cameron is likely to remain Prime Minister, and that is leading to strong support for the sterling across the board.

Great Britain Pound Logs Gains After Economic Data

The Great Britain pound rallied today, reaching the strongest level in a month versus the US dollar, as macroeconomic data from the United Kingdom was relatively positive. The softness of the US currency added to the upside momentum of the sterling.

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