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 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.

Pound Mixed Following Poor Economic Data

The Great Britain pound was mixed today following yesterday’s surprisingly strong performance. The sterling was resilient during the previous trading session even though macroeconomic data from the United Kingdom was disappointing.

Pound Drops as House Prices Demonstrate Record Drop

The Great Britain pound declined today as house prices demonstrated a record drop this month. The unfavorable data added to concerns that Britain’s economic recovery is struggling.

UK Pound Gains Some Ground

It’s been a bit of a rough go for the UK pound recently, but the sterling is currently gaining some ground on the Forex market. While trading mixed today, sterling is a little higher against the euro and the US dollar.

UK Pound Gains Ground Against Major Counterparts

UK pound is gaining ground against its major counterparts today, thanks to improving data. Pound is doing especially well against the euro, thanks to better economic data and policy divergence.

Pound Edges Down After BoE Meeting

The Great Britain pound fell a little today after the Bank of England kept its monetary policy stable. Now Forex traders wait for a policy decision from the European Central Bank.

Sterling Rallies with Help of Positive News from Britain

The Great Britain pound rallied today due to a positive report about the UK service industries and the upward revision of growth forecast. The currency managed to gain against almost all its most-traded peers, including the US dollar.

Pound Drops vs. Dollar, Holds Ground vs. Other Peers

The Great Britain pound fell against the US dollar yesterday and maintained losses today. The sterling’s performance against other currencies, including the euro and the Japanese yen, was far better.

Manufacturing Data Helps UK Pound

Manufacturing data is providing a boost for the UK pound today. After seeing days of poor performance, the sterling is getting a little help from economic data.

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