The Great Britain pound remained soft today, falling for the whole week so far, but may yet rally in the near future as economic recovery can potentially encourage the central bank to review its monetary policy sooner than was previously expected.
UK gross domestic product grew 0.8 percent in the third quarter of this year, fastest since 2010. Such performance led to speculations that the Bank of England should raise interest rates sooner rather than later. Additionally, solid fundamentals will not give the BoE reason to complain about stronger currency. Indeed, the central bank said in the minutes of its last policy meeting:
The rise in the sterling exchange rate would reduce the extent to which imported prices were squeezing householdsâ real incomes.
Mark Carney was a consistent hawk in the Bank of Canada (unlike his successor) and it looks like he maintained his hawkish stance in the role of the BoE Governor.
GBP/USD edged down from 1.6045 to 1.6041 as of 5:03 GMT today. GBP/JPY traded at 157.44 after opening at 157.51. At the same time, EUR/GBP went down from 0.8564 to 0.85613.
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