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 Continues to Struggle

UK pound continues to struggle in Forex trading today, thanks in large part to the fact that the economic data isn’t holding up, and Bank of England policymakers don’t seem to be on the same page.

UK Retail Sales Make Life Harder for Sterling Bulls

The Great Britain pound fell a bit today after retail sales missed forecasts, reinvigorating concerns about Britain’s economic growth. The losses were limited though, and the sterling managed to gain ground as the monetary policy outlook supported the currency.

BoE Minutes Contribute to Pound’s Strength

Monetary policy minutes of the latest Bank of England meeting revealed that two policy makers were in favor of raising interest rates. This caused the Great Britain pound to gain against its major counterparts.

Carney’s Comments Help Pound Gain Ground

The Great Britain pound rose today after Bank of England Governor Mark Carney said over the weekend that the central bank may start raising interest rates before actual wage growth kicks in.

UK Pound Remains Mixed Against Major Counterparts

UK pound is mixed today, thanks to a lot of thought being given to the latest data points, as well as to interest in possible outcomes for the future of the UK economy.

UK Pound Fights Back in Currency Trading

The last week has been a bit humiliating for the UK pound, with persistent losses against major currencies. However, there appears to be some relief in sight for the embattled pound. The currency is gaining a little bit of ground today — at least against the euro.

Economic Data Weighs on Pound

Sterling is heading lower today, dropping as the latest manufacturing growth data disappoints. The UK economy continues to struggle, and it doesn’t help much that the Bank of England has predicted slowing growth in the economy. Indeed, compared to some of its major counterparts, the slowdown is disappointing, and contributing to losses for the pound.

Positive Economic Data Does Not Support Sterling

Macroeconomic data from Great Britain was positive today, but this did not help the pound. The currency was flat against some of its major counterparts, including the euro and the Japanese yen, and dropped versus the US dollar.

UK Retail Sales Disappoint FX Market, GBP Retains Weakness

The Great Britain pound retained its weakness against the US dollar today, following yesterday’s losses and touching the lowest level in a month. Against the Japanese yen, the sterling continued to trade sideways.

BOE Minutes Weigh on UK Pound

UK pound is down pretty much across the board today, thanks in large part to the release of the minutes from the latest Bank of England meeting. It looks as though loose monetary policy is going to continue for a little while longer, and that is keeping the sterling down against its major counterparts.

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