BoE May Postpone Quantitative Easing — Pound Rises

The Great Britain pound surged as the report this week showed the faster growth of the UK economy in the third quarter, causing the speculation that the next round of the quantitative easing would be postponed.

The Britain’s GDP increased 0.8 percent in the third quarter of 2010, twice the forecast value. The Standard & Poor’s removed the negative outlook for the UK debt and confirmed Britain’s top AAA credit rating. The favorable economic data reduced the speculations that the Bank of England would soon take measures to stimulate Britain’s economy.

The pound fell previously against some currencies as the retailer that said the sales grew in October outnumbered those, who said the sales declined, by 36 percent, compared to the expected value of 40 percent. The prices for homes fell 0.7 percent, while they were expected to decrease by 0.3 percent.

GBP/USD rose from 1.5764 to 1.5941 yesterday and traded today near 1.5942 as of 00:50 GMT. GBP/JPY went up from 128.88 to 129.12 yesterday after dropping to 128.08 and traded at about 129.07 today.

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