Votes to avoid an increase in the Bank of England’s asset buying program are providing support for the pound today. Pound is modestly higher against the US dollar, and the currency has broken a recent losing streak against the euro. As more members of the MPC decide against quantitative easing, the sterling is likely to gain some strength.
UK pound broke a two-day loss to the euro today as Forex traders anticipate an end to quantitative easing. Once again, the Bank of England decided to keep the asset purchase program in place, without increasing it. The last meeting, earlier this month, is the final meeting of the BOE with Mervyn King as Governor. Mark Carney takes over on July 1, after his stint at the Bank of Canada.
Sterling got a boost from the news earlier in the month, and now it’s getting another bit of support as many expect that the MPC minutes will show that even more members voted against an asset program increase. There are expectations that the program could soon be tapered.
Gains against the dollar are more subdued, though; Forex traders are waiting for clues from the Federal Reserve about when that asset purchase program will be tapered.
At 13:19 GMT GBP/USD is up to 1.5667 from the open at 1.5644. EUR/GBP is down to 0.8552 from the open at 0.8561
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