The Great Britain pound weakened today after data showed that inflation slowed last quarter more than was predicted by analysts, reigniting concerns about the UK economy.
Great Britain Pound GBP
Detailed information and fundamental factors
Central Bank: Bank of England
Interest Rate: 0.50%
Public Debt to GDP Ratio, 2011: 86.3%
Trade Balance, 2011: -$159.8 bln.
Inflation, 2011: 4.5%
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
UK Pound Gains as Home Prices Rise
May 20th, 2013 at 15:41
Great Britain Pound
Hopes for the UK economy are driving the UK pound higher, especially against the US dollar, today. Rising home prices are providing optimism that the UK economy is improving, and that is reflected in sterling gains today.
UK Pound Gets Boost from BOE Outlook
May 15th, 2013 at 13:23
Great Britain Pound
UK pound is gaining ground today, heading higher as the latest BOE economic outlook provides some hope for growth. Sterling is on the rise against most of its major counterparts due to the enthusiasm and expectations for the rest of the year.
Pound Declines Despite Favorable Fundamentals
May 14th, 2013 at 12:43
Great Britain Pound
The Great Britain pound declined today even though macroeconomic data from the United Kingdom was encouraging. The housing market looked particularly good as demand for property rose to its highest level in over three years.
Pound Weak vs. Dollar Even as BoE Maintains Monetary Policy Stable
May 09th, 2013 at 22:38
Great Britain Pound
The Great Britain pound fell against the US dollar today even as the Bank of England maintained the monetary policy the same, refraining from additional easing. The currency rose against the euro and the Japanese yen though.
Pound Gains Ahead of BoE Meeting
May 08th, 2013 at 20:39
Great Britain Pound
The Great Britain pound advanced today on speculations that the recent string of positive reports will encourage the Bank of England to refrain from adding to monetary stimulus on tomorrow’s meeting. The currency went down against the euro.
Another Good Week for GBP?
May 06th, 2013 at 23:40
Great Britain Pound , Forex Forecast
The Great Britain pound felt itself strong recently, but was a bit soft at the start of today’s trading session. Will the currency be able to maintain its rally this week?
Positive Fundamentals Lead to Week of Strength for Sterling
May 04th, 2013 at 13:29
Great Britain Pound
The Great Britain dollar was rallying this week as positive macroeconomic data confirmed economic recovery in the country that recently emerged from recession. Fundamentals outside of Britain also helped the currency.
UK Services PMI Adds to Strength of Pound
The Great Britain pound rose today as data showed that the service sector expanded last month faster than was expected, adding to signs of economic recovery in the United Kingdom.
Pound Firm as Construction PMI Beats Expectations
May 02nd, 2013 at 9:32
Great Britain Pound
The Great Britain pound remained strong today as data showed that the construction sector shrank last month less than was predicted by analysts, giving hope that the UK economy is recovering.
