The Great Britain pound rose today against the U.S. dollar for the first time in the last 10 days after reaching a new bottom level since the mid October 2006.
The expectations that the Bank of England will cut the interest rate at it next meeting rose after BoE reduced its economic growth forecast. Pound managed to lose more than 7.6 percent during its downfall since reaching a local high on July 15.
5.8 percent loss was recorded during the last 10 trading days. Yesterday Bank of England Governor Mervyn King said yesterday that he saw a «chill in the economic air» as he commented the fastest climb in the unemployment in July in almost 16 years.
Market analysts believe that the central bank will probably cut the interest rate as soon as the next month. The pound sterling is reacting negatively on such expectations.
GBP/USD rose from 1.8693 to 1.8711 as of 9:10 GMT today after reaching 1.8619 — the lowest level since October 11, 2006. EUR/GBP posted a first decline in three days today — it went down from 0.7983 to 0.7967.
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