The Great Britain pound was a bit soft even after Bank of England Governor Mark Carney signaled that the UK economy is recovering, leading to speculations that policy makers may raise interest rates sooner than was expected.
Carney was speaking about the positive influence of stimulating policy, saying:
Economy is picking up and the stimulus is working.
He also added:
By making policy more effective, we make it more stimulative and reinforce the recovery.
Such comments made analysts believe that the BoE will consider monetary tightening earlier than was previously believed.
The pound did not profit from the good news, perhaps because it has exhausted its strength on the previous massive rally. And of course the sterling had hard time to rise versus the greenback that was supported by the shockingly big drop of unemployment claims.
GBP/USD ticked down from 1.5802 to 1.5791 as of 2:39 GMT today. GBP/JPY traded at about 157.48 today after falling from 157.99 to 157.30 yesterday. EUR/GBP was down from 0.8412 to 0.8407 after trading sideways on the previous session.
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