Forex News

The pound remained bearish this week as market sentiment towards assets in the U.K. didn’t manage to improve, after interest rates remained at a record low in the country, according to what most analysts expected to happen for today’s decisions.

The pound didn’t manage to pare last week’s losses versus most of the 16 main traded currencies this Monday, as not only the financial, but the political situation in the U.K. is rather negative, impacting the already not very attractive assets in the country.

The U.K.’s currency continued to decline as speculations that a new long term crisis is likely to unfold in Britain as concerns regarding the country’s record budget deficit will be a solid obstacle on the way for economic recovery, setting the pound down mainly versus refuge currencies.

The British currency had a favorable performance today versus multiple key-currencies today, beating the euro and the Swiss franc as the country starts to show more evident signs of recovery, attracting investors back to the U.K.

The U.K. currency profited today from an increase in the nation’s house prices, fueling even further speculations that the recession might be ending in Britain, attracting investors to purchase pound-priced assets in a day of bullish equities markets in London.

The pound lost versus several key-currencies today and specially versus its regional rival, the euro, as traders speculate that U.K.’s financial authorities will insist in quantitative easing measures to stimulate the British economy, affecting the sterling outlook in currency markets.

The pound extended its weekly gains today versus the euro and the U.S. dollar, ending the year with the first advance versus both since 2006, as the British economy shows its first evidences of recovery, affecting its currency positively.

The pound declined for another day after policy makers agreed unanimously to extend stimulus in order to rescue the faltering British economy from the longest recession in the last decades, decreasing attractiveness for an already weakened currency in foreign-exchange markets.

The pound declined today versus the euro and the U.S. dollar as the Great Britain did not manage to find its way out of recession like multiple wealthy nations around the world already did, shunning investors from pound-priced assets in currency and equities markets.

In another bullish day versus the euro, the pound found support to extend its winning streak after U.K.’s unemployment declined, a strong signal of recovery for the British economy.