The pound entered its fourth day of losses against the dollar and the
euro, after British financial sector calls Bank of England to expand its
asset purchasing program to revive the faltering economy in the United
Kingdom.
The British Chambers of Commerce stated
yesterday that the already expected economic recovery in Great Britain
is not guaranteed and further measures should be taken immediately by
the Bank of England, reflecting on the national stock exchange market
and currency, the latter losing against virtually all major pairs,
mainly to the U.S. dollar, the yen, and the Swiss Franc. According to
the group’s call for the asset-purchasing program expansion, the Bank of
England should extend the current program to 150 billion pounds and
eventually ask permission to go further, considering the U.K.’s
contracting economy needs. Factory production unexpectedly fell in May,
adding to the already negative outlook for the pound sterling.
The
quantitative easing measures asked by the British Chambers of Commerce
may revive Great Britain’s economy, but on the currency point of view,
the speculations regarding this fact already weigh on the pound, and if
the measures continue further, it’s considerably possible that the pound
will bottom against the euro and the U.S. dollar, yet, negative news in
these markets make it hard to predict what direction the pairs will
follow.
GBP/USD traded at 1.6225 as of 10:36 GMT rising from
1.6125 in the intraday, but still in a very low level considering last
week’s rate around 1.6400. GBP/JPY remained stable at 154.53 after
several days operating negatively.
If you want to comment on the
Great Britain pound’s recent action or have any questions regarding this
currency, please, feel free to reply below.
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