- 23 February 2012
Sterling tumbles following MPC meeting minutes
The British pound tumbled against most of its main currency rivals yesterday, following the release of the latest MPC Meeting Minutes. The meeting minutes, which left the possibility of further quantitative easing in the coming months, caused investors to abandon the sterling in favor of safer assets. The GBP/USD dropped close to 160 pips following the news, but was able to stage a mild correction during the evening session. The GBP/JPY slid close to 90 pips before stabilizing around the 125.85 level.
- 04 January 2012
UK manufacturing PMI sends pound soaring
The GBP saw its recent downward trend reverse itself in trading yesterday, following positive news that helped boost confidence in the British economic recovery. The UK Manufacturing PMI came in well above expectations and resulted in gains for the pound versus the USD and CHF. While it is too soon to say whether the figure was an actual signal that the UK was heading toward recovery, it was enough to get investors to move to riskier assets in trading throughout the day.
- 02 January 2012
AAA rating won't save sterling
Sterling is caught between a rock and a hard place. On one had the GBP continues to receive strong inflows due to the European debt crisis. The rejection of the new euro zone pact by Prime Minister David Cameron and the UK AAA rating support continued real money flows. The safe haven status of the GBP is highlighted by the yield on the 10-year gilt falling to a record low under the 2% level.