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BOE Decision Not a Surprise, But Disappoints Some

June 7, 2012 7:48 AM EDT Send to a Friend
Bank of England kept rates unchanged at 0.50 percent on Thursday. Last month the BOE voted not to increase its £325bn ($503.7 billion) asset purchase program. With the worsening crisis in the EU, many in England were excepting QE measures to increase. However, the BOE opted against it - at least for now.

The spot rate for GBP/USD is moving higher following the BOE statements, extending a rally that began in June when the price bounced off 1.5270 to trade at 1.5550 currently. The price of GBP/USD has fallen from a high of 1.63 in April.

CurrencyShares British Pound Sterling (NYSE: FXB), which tracks the spot rate of GBP/USD, is lower by 1 percent year-to-date, in what is shaping up to be a volatile year for both pound sterling and the greenback.

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