The Great Britain pound rose against the US dollar and the Japanese yen even as the central bank Governor signaled that an interest rate hike will likely not happen very soon. The currency fell versus the euro.
Mark Carney, Governor of the Bank of England, explained yesterday that the 7 percent unemployment level is a “threshold” to reach before considering raising interest rates and timing for reaching it is a “subject to uncertainty”. Carney said:
We do our best to give our estimates of that uncertainty: two fifths probability by the end of 2014, three fifths probability by the end of 2015 is what we have there.
Economists are optimistic about Britain’s economic growth. It is expected that today’s report will show that the UK economy continues to expand with stable pace.
GBP/USD was up from 1.6153 to 1.6213 yesterday and was at 1.6220 as of 3:49 GMT today. EUR/GBP rose a little from 164.20 to 164.63 and GBP/JPY advanced from 0.8369 to 0.8375.
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