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 Continues to Struggle as Independence Vote Looms

The vote on Scottish independence is coming up on Thursday, and the pound continues to  struggle on uncertainty surrounding the outcome of the vote, as well as speculation about what might happen if the Scots really do vote to split off from the United Kingdom.

UK Pound Sees Slight Gains

UK pound is seeing slight gains today, perhaps in correction for recent difficulties, which are the result of concerns over what’s next for Scotland. Even though the sterling is higher, the gains are precarious, as the Scottish independence vote injects uncertainty into the situation.

Pound Bounces, Remains Under Pressure

The Great Britain pound ticked up today but remained under pressure from the upcoming referendum about Scotland’s independence and the monetary policy outlook that is not particularly supportive for the currency.

Scottish Independence Weighs on Pound

UK pound is lower today, thanks in large part to the latest poll on Scottish independence. The latest numbers indicate that those favoring a split from the United Kingdom have pulled ahead of those opposed to the split. The idea that the United Kingdom is falling apart is one that is weighing on the pound today.

Sterling Attempts to Gain Ground After BoE

The Great Britain pound experienced weakness today but halted its decline and attempted to gain ground after the Bank of England decided to keep its monetary policy unchanged.

Pound Sinks, Finds No Help from Construction PMI

The Great Britain pound sank to the lowest level since March against the US dollar today. The currency was also weak against other majors, even the Japanese yen, against which the sterling has rallied earlier.

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.

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