By Tom Lydon:
With the British economy teetering on another recession, market observers are anticipating new stimulus measures from the Bank of England, driving the British pound currency, along with a related exchange traded fund, to a three-year low.The CurrencyShares British Pound Sterling Trust (FXB) dropped 4.4% over the past three months.
More QE on the cards as FTSE hits 6400 and Sterling weakensMinutes from the previous Bank of England MPC showed three committee members voted to increase asset purchases, including that of Governor Mervyn King, and thereby [...]Joshua Raymond
Hickey and Walters (Bespoke) submit:
The US Dollar Index has pulled back from 52-week highs in recent weeks, and it is now sitting just above its 50-day moving average. At the same time, the euro really hasn't bounced much, and it remains in a nasty downtrend. Two currencies that have gained ground in recent weeks are the British pound and the Swiss franc.
By Tom Lydon:
The British pound has shown strength over the past few weeks, reaching a 22-month high against the euro. Investors may see the pound as a safe haven currency as the U.S. dollar weakens and Spain dips into a recession.
The pound sterling was worth just 1.1526 euros in London trade on Thursday, its lowest since the 1999 creation of the European single currency. The Bank of England is expected to lower its interest rate later in the day.