UK pound is down against its major counterparts today, dropping as expectations that the Bank of England will keep its monetary policy weigh on the currency.
The latest inflation data out of the United Kingdom indicates that the economy isn’t growing as fast as some would like, and that means that there is likely to be more interest in keeping monetary policy accommodative and asset purchase programs in place. The Office for National Statistics reported that consumer price inflation was 2.9 per cent from a year earlier in June. That compares with 2.7 per cent for May. While there was an increase, it wasn’t very big.
Forex traders are also interested in seeing tomorrow’s release of the latest BOE meeting minutes. These minutes are the first released since Mark Carney took over as Governor at the Bank of England.
After the first policy meeting under Carney, the BOE indicated that rates would remain lower for longer than expected, and that the central bank would continue the asset purchase program. Many are interested to see whether or not Carney voted for more quantitative easing.
At 13:16 GMT GBP/USD is down to 1.5071 from the open at 1.5100. EUR/GBP is up to 0.8695 from the open at 0.8651. GBP/JPY is down to 150.0725 from the open at 150.8250.
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