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 Drops After GDP Disappoints, Resilient vs. Dollar

The Great Britain pound fell against some of its major counterparts today as economic growth of the United Kingdom disappointed market participants. Surprisingly enough, the sterling was able to gain on the US dollar.

GBP Highest Since 2008 vs. EUR, Weakest Since 2013 vs. USD

The euro jumped to the highest level since February 2008 against the euro today with the help of surprisingly good retail sales in the United Kingdom as well as yesterday’s monetary policy announcement from the European Central Bank. At the same time, the sterling dropped to the lowest level since July 2013 versus the US dollar.

Pound Drops as BoE Minutes Show Unanimous Vote

The Great Britain pound sank today after the Bank of England released minutes of its latest policy meeting, revealing that voting for stable interest rates was unanimous.

Inflation Figures Send Pound Lower

Disappointing inflation figures are causing some trouble for the pound today. Sterling is lower against the dollar, and, while recovering against the euro and yen, is still trading somewhat choppily against other currencies.

Pound Rallies After HPI Report & BoE Meeting

The Great Britain pound rallied today following a positive report about house prices and the monetary policy decision made by the Bank of England. The currency dropped to the lowest level since July 2013 against the US dollar intraday but bounced to the opening level as of now.

GBP/USD Drops to New Low on Services PMI

The Great Britain pound dropped today, reaching a new low versus the US dollar, as the UK services sector demonstrated weakest growth in more than a year and a half.

Pound Drops to Lowest Since August 2013 vs. Dollar

The Great Britain pound sank today, reaching the lowest level since August 2013 against the US dollar, as UK manufacturing slowed unexpectedly by the end of the year. The data suggested that the nation’s central bank will not be in a hurry to start raising interest rates.

Pound Gains vs. Dollar, Retreats vs. Yen

The Great Britain pound gained today against the US dollar on the back of relatively positive housing data. Gains were limited though, and the currency dropped versus the Japanese yen.

UK Pound Loses Ground After Confidence Report

After a good day yesterday, the UK pound is losing ground today. The latest consumer confidence report has been released and morale is down, brining the sterling down with it.

GBP Gains vs. EUR & JPY After BoE Minutes & Employment Data

The Great Britain pound dropped against the US dollar today but rose versus the euro and the Japanese yen. The minutes of the latest central bank’s policy meeting revealed that some policy makers want to raise interest rates. UK employment data was good, supporting the currency.

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