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 Trades Mixed to Lower Following Rally

The Great Britain pound was little changed at the start of the current trading session, edging a little lower against the euro and the Japanese yen. The currency rallied yesterday due to better-than-expected retail sales.

BOE Minutes Help UK Pound

The latest minutes from the Bank of England are helping the UK pound today. The minutes seem to indicate that some members of the Monetary Policy Committee are getting nervous about inflation, and some think that could mean that the BOE is ready to take action that could support the sterling.

Pound Remains Extremely Bearish

The Great Britain pound fell today against other majors, including the US dollar and the euro. The currency also failed to rise against the Japanese yen, retreating to the opening level after the earlier rally.

Pound Drops vs. Dollar, Gains on Euro

The Great Britain pound fell against the US dollar during the current trading session as today’s data showed decline of UK house prices. The general risk-off market sentiment was not helping the currency to hold ground against the greenback though it allowed the sterling to outperform the euro.

Sterling Set to Close Much Lower on the Week

UK pound continues to struggle in currency trading, and this week looks to end on a low note. Even with signs that the economy could be improving, the sterling is still down against its major counterparts.

Pound Sinks as UK Growth Loses Momentum

The Great Britain pound sank today after the Bank of England predicted that economic growth and inflation will decelerate in the near future. UK employment data turned out be worse than analysts have expected, adding to pressure on the sterling.

No Help for the UK Pound in Forex Trading

There isn’t a lot of help for the UK pound in forex trading today. With recent data disappointing analysts, and with the Bank of England still not taking any action, the sterling is down almost across the board today.

Manufacturing Data Boosts UK Pound

UK pound is heading higher today, gaining ground thanks to the latest manufacturing data. Manufacturing data surprised to the upside, and the sterling is getting a boost because of the news.

UK Pound Struggles Against Its Major Counterparts

UK pound is struggling against its major counterparts today, heading lower as interest rates expectations weigh. With the Bank of England expected to maintain low rates, there isn’t a whole lot to help support the pound against other major currencies in Forex trading.

Pound Ends Friday with Gains

The Great Britain pound ended Friday with gains thanks to GDP report that was in line with analysts’ expectations and poor economic data from the United States. The currency still ended the week with losses versus the euro.

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