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

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.

UK Pound Slumps After BOE Minutes

Once again, the Bank of England is disappointing Forex traders, and that is leading to a lower pound today. With a rate hike nowhere in sight, there is little to help the sterling against its major counterparts.

Housing Data Supports Sterling’s Rally

The Great Britain pound gained today as UK house prices were rising with accelerating pace this month, alleviating some fears that investors have had about Britain’s economy. Experts are still skeptical about the pound’s ability to keep rising, though.

Higher Stocks Help UK Pound

UK pound has been ailing recently, and the gains for stocks today are helping remedy that — at least for now. Concerns about the UK economy are on the rise, so the sterling’s gains today may not last.

Sterling Continues to Struggle Against Counterparts

UK pound continues to struggle against its major counterparts today, performing mostly lower across the board. Inflation data is a big part of the problem for the sterling today, with concerns about the economy starting to creep back in.

Economic Data Doesn’t Support Britain’s Pound

Economic news from the United Kingdom were good for the most part today, but it did not prevent the Great Britain pound from dropping and reaching the lowest level in a month against the Japanese yen.

Pound Higher After BoE Meeting

The Bank of England made no surprise, keeping its monetary policy on hold. Yet the Great Britain pound was still able to trim its losses versus the Japanese yen as well as to keep rallying against the US dollar.

UK Pound Gains Ground Today

After struggling recently, the UK pound is gaining a little ground today. Recently released data is helping the sterling, especially as the economic divergence between the United Kingdom and the eurozone remains pronounced.

Manufacturing Data Boosts Pound Against Euro

UK pound is heading higher against the euro today, even though it is down against its low-beta counterparts, the dollar and then yen. Economic divergence is one of the reasons that the pound is doing so well against the euro today.

Archives

SUBSCRIBE

Follow Top Forex News on Facebook FB