U.K. pound heads higher in forex trading
The sterling bounced this morning in currency trading on the FX market. Even though the euro is struggling in forex trading, the U.K. pound is heading higher.
One of the reasons is the news out of the U.K. showing that MPC members voted to keep the quantitative easing program intact. GFT’s Boris Schlossberg describes in FX360 the importance of this information:
Today’s MPC decision was a sigh of relief for pound bulls and may remove some of the selling pressure that has dogged the unit for the past several weeks. A rebound in the pound will most likely manifest itself in the EUR/GBP
cross which has climbed steadily to break above the 9000 figure. Today’s news sent the pair tumbling back below that level, and the cross could well correct to 8800 over the next several days.
This shows that the British policymakers are intent on supporting the economy and the sterling in currency trading for the time being.
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