Mervyn King Comments Hurt the GBP
September 15th, 2009 Posted in GBP - Pound Sterling
Name: Dan
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Earlier today, there was the Inflation Report Hearings from Britain that discussed the morning’s inflation report. The Bank of England (BoE) Governor Mervyn King stated during the hearings that there is a reasonable chance for the BoE to lower British Interest Rates in the not too distant future, in order to boost lending. This resulted in a significant turn of events, as the GBP continued to go bearish throughout Tuesday’s trading session. The GBP sell-off was compounded, as the U.S. and Euro-Zone economies continued to outperform Britain.
The GBP/USD cross is currently down by a staggering 120 pips at 1.6499. Much of this is owed to higher investor confidence in the U.S. currency, as the U.S. economy continues to outperform Britain. The British Pound is trading lower for the day by a gigantic 100 pips vs. the EUR, as the pair approaches the 0.8900 level. The Pound also slipped vs. other key rivals, such as the CHF and JPY. This downward trend may continue for the GBP, if equities to continue to rally, and there are further indications that Britain will cut her Interest Rates.
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Tags: Bank of England, British Interest Rates, EUR/GBP, GBP forecast, GBP Prediction, GBPUSD, Mervyn King, Mervyn King Comments Hurt the GBP
