The Great Britain pound fell to its lowest historical value against the euro today after the pessimistic economic news were released in UK. Pound also lowered against other major currencies today.
Great Britain pound continued its almost a week long rally against the currencies of Eurozone, U.S. and Japan, as the traders believe that the Bank of England will turn its head to inflation rather than the lack of the financial liquidity.
Today two important interest rates decision were highly anticipated by the markets — the monetary policy decisions by the European Central Bank (ECB) and the Bank of England (BoE).
Yesterday’s triumph of the currencies against the Japanese yen didn’t last too long. Today yen soared up to the two-week high against the euro and the Great Britain pound on the bearish stock market trading session.
Japanese yen continued to fall against other currencies today during the Asian session after the Reserve Bank of Australia lifted its interest rate to the historically high value — 7.00%.
Japanese yen is gaining against all its rivals today, as the stocks fall down and the high-risk currencies start to meet their demise. While traditional carry trade counterparts of yen - Australian and New Zealand dollars, are often unstable during such times, the less risky euro and Great Britain pound are also losing now.
The Great Britain pound today reached its lowest value against the Japanese yen since 11th of July, 2006, continuing the strong bearish trend that has started during early November 2007.
Both central banks decided their monetary policy changes today regarding their main interest rates. Both Bank of England and European Central Bank left their interest rates unchanged - 5.50% and 4.00% respectively as the majority of the market experts were predicting.
The Great Britain pound recovered the part of its recent losses against the euro, the dollar and the yen today after the U.K. services index for December (reported by the Chartered Institute of Purchasing and Supply) unexpectedly rose.
Today euro reached a new record high value against the Great Britain pound after the real estate market of the United Kingdom brought even more negative news thus increasing the chances for the Bank of England to cut the interest rate in January or February 2008.