UK Economic Outlook Causes Weakness of Pound

The Great Britain pound went lower today as the outlook for the UK economy suggests that the nation’s central bank will stick to accommodative policy.

The Bank of England minutes suggested that the prospects for Britain’s economy stays dim and the bank will be forced to keep the borrowing costs low to stimulate economy. The pound dropped 7.3 percent versus the euro, making it the worst-performing among 10 currencies of major economic after the US and Canadian currencies.

GBP/USD fell from 1.6004 to 1.5976 as of 14:55 GMT today, following the advance to 1.6046. GBP/JPY dropped from 128.84 to 128.50.

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