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 Rallies vs. Dollar, Unable to Beat Other Currencies

The Great Britain pound rallied against the US dollar today as UK retail sales exceeded analysts’ expectations. The sterling’s performance against other currencies was not so good, and Britain’s currency touched the lowest level in almost two months against the Japanese yen.

No Inflation in Great Britain, Pound Slides

The Great Britain pound dropped after an official report showed that consumer prices in the United Kingdom were unchanged from the previous year. The data weighed on the currency, sending it into the second consecutive daily decline.

Deflation Fears Hold UK Pound Back

Worries about deflation are holding the UK pound back today. Sterling is mostly lower against its major counterparts, struggling as Forex traders process the weak data already shared and worry about the next data releases.

Pound Steady, Set to Close Week Second Weakest

The Great Britain pound was relatively steady against the dollar today, rising versus the Japanese yen at the same time. Still, the sterling is set to close the week as the second weakest currency following the dollar.

Sterling Loses Support from Interest Rate Hike Expectations

Today’s employment data from the United Kingdom and the minutes of the latest Bank of England’s policy meeting suggested that there likely will not be an interest rate hike in the near future. Hopes for monetary tightening were a key component for the strength of the Great Britain pound, and the currency has been weakening as chances for an early rate hike were waning.

UK Pound Recovers Some of Last Week’s Losses

UK pound is in the process of recovering some of last week’s losses right now. Thanks to profit taking and a little hope for the future, sterling is gaining some ground against the US dollar.

Pound Drops After Carney’s Comments

The Great Britain pound tumbled today, reaching the lowest level since June 2010 against the US dollar, after the central bank’s chief signaled that the planned interest rate hike will likely be postponed.

UK Production Output Disappoints, Sterling Unfazed

The Great Britain was flat against the US dollar today after economic data from the United Kingdom did not match expectations, being weaker than it was forecast. At the same time, the sterling managed to rally against some other major currencies, including the euro.

UK Pound Trades Mostly Lower – But Higher Against Euro

UK pound is trading mostly lower today, but it is moving higher against the euro. Sterling is down against many of its major counterparts, but is gaining ground against the euro as concerns about Greece continue to weigh on the 19-nation currency.

UK Pound Continues to Struggle After BOE Meeting

UK pound is still struggling, thanks in large part to concerns over the low inflation rate. Bank of England policymakers left matters unchanged at its most recent meeting, and sterling is lower against many of its counterparts.

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