Pound falls after fears of more QE
Sterling fell to its lowest in more than 1 week against the Euro and many other major currencies yesterday, after the Bank of England minutes were seen as leaving the door open to a further expansion of its Quantitative Easing asset buying programme. Rates @ 08:30am are as follows:
- GBP/EUR 1.1131
- GBP/USD 1.5985
- GBP/AUD 1.8112
- GBP/NZD 2.2645
- GBP/CAD 1.6753
- GBP/CHF 1.6581
- GBP/JPY 145.85
- GBP/ZAR 12.047
- EUR/USD 1.4353
The pound fell after a Daily Mail article said there may be more QE, however most think this won’t happen, and as we know the Daily Mail do like alarmist stories, so I wouldn’t read too much into it at the moment as no proper news source believes it will happen.
Not really that much happening in the currency markets today in terms of data releases. US – Jobless Claims and Japanese Jobless Rate is about it, as the markets slow as Christmas approaches.
It is important to note however that as trade volumes are very thin this week, any positive or negative news can have a bigger impact than normal on exchange rates.
That’s about it. I hope you all have a very Merry Christmas, and blog service and trading services will resume as normal on Tuesday.
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