According to the minutes from their June meeting, the Bank of England is set to freeze interest rates yet again, keeping them at the record low of 0.5 per cent. It is suggested that alternative quantitative easing measures would be discussed, but the very suggestion that the BoE may print more money saw traders at ForexYard distance themselves from sterling during Wednesday’s sessions.
Following the discouraging news from London the pound suffered across the board, with significant losses against the US dollar and the struggling euro. During the London trading session online traders at ForexYard and other foreign currency markets sold the pound, pushing it down as low as $1.6050 against the greenback. The euro also took advantage of the reluctance of investors to buy pounds, climbing to a two-week high against sterling, trading at 89.53p.
During the all-important meeting of the Bank of England’s board members earlier in the month a vote whether to keep interest rates at the ultra-low rate of just half a per cent was found to be in favour of keeping rates down. Seven of the nine members agreed to an interest rate freeze for the time being, news which had an instant knock on affect for the pound.
The continuing uncertainty surrounding Greece and its failing economy has also weighed heavily on the British pound. This is due to the large amount of British money that is currently invested in Greece, its private sector and also it public holdings, money that Greece may not be able to repay.
So what’s next for sterling? Will there be renewed confidence shown towards the British pound or will we see more selling during Thursday’s sessions. If you want to trade the pound or any other major foreign currencies visit ForexYard. Online Forex broker ForexYard is a leading place to trade Forex, with great trading offers available continually. To find out more visit www.forexyard.com today.
