BOE Decision Not a Surprise, But Disappoints Some

June 7, 2012 7:48 AM EDT
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.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

ETFs, Fed, Forex

Add Your Comment