Britain’s Pound Gains vs. Dollar, Weakens vs. Euro

The Great Britain pound rose today against the US dollar on the speculation that the European policy makers would begin the bonds purchasing program to resolve the debt crisis, increasing the attractiveness of the British assets. The currency fell against the euro.

The President of the European Central Bank
Jean-Claude Trichet said that the policy makers are determined to find the solution to Europe’s sovereign-debt troubles and hinted that the stimulus program may be such solution. The yield on the British 10-year government bonds increased by two basis points to 3.38 percent.

GBP/USD rose from 1.5619 to 1.5635 as of 10:18 GMT today. EUR/GBP advanced from 0.8408 to 0.8436, following the decline to 0.8388.

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