Pound up as Bank of England confirms QE not extended
11 May, 2012
Sterling spent Thursday out-performing most of the major currencies again, with pound euro exchange rates reaching fresh highs, as mid market tested new resistance levels. The boost came after lunch when the Bank of England’s MPC (Monetary Policy Committee) released their decision about interest rates and Quantitative Easing. Some analysts were expecting another small injection of cash via QE following the realisation the UK had slipped back into recession which had been hampering sterling. The result of “no change” gave the pound a fresh boost and we saw the rally over the rest of the day’s trading.
The fresh problems which have arisen this week in the Eurozone with Spain, Greece and France all having issues are likely to weigh on the single currency going forward but we must also bear in mind that the UK is in recession and it will only take some poor data releases for the pound to be knocked off the pedestal it finds itself on at present. With this in mind it would be prudent for those with a currency requirement coming in the next few weeks to look at the various options available for maximising the exchange rate you purchase at. Get in touch with one of the team at Currency Index today to discuss your specific requirements for sending money overseas.
Today from the UK we have PPI (Producer Price Index) data at 9.30am which could weigh on sterling if the figures come out lower than expected. If you are sending money to Canada, later on across the pond we have Canadian unemployment figures at lunchtime and US PPI data, followed by a consumer confidence survey later in the day.
Another good week for sterling but what will next week bring?
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