The British currency managed to revert a downtrend versus the dollar, euro, and several other main traded currencies after the Bank of England signaled it will not continue its asset purchase program, one of the greatest responsible for the pound losses this year.
The pound managed to rebound today in currency markets after key people in Bank of England reached a consensus to stop the current asset purchase program, which has been one of the most negative factors weighing on the pound during the past months. After these events came to public today in London, the pound managed to rise below 0.90 pence per euro, for the first time in 3 days, and after touching several record lows last week. Interest rates, maintained at 0.5 percent in the U.K. as of the beginning of September, were published today to have been agreed unanimously, adding confidence that central bank officials are operating in consensus.
The pound’s outlook seems to be slightly improving as the Bank of England and the economic figures in the U.K. indicate the first signs of optimism, which is providing traders with a good profit opportunity, since the pound could be interpreted as devalued last week. The short-term forecast for the pound will depend on how optimistic other economic regions’ data will be, consequently attracting traders to the best bets available.
GBP/USD traded at 1.6433 as of 11:29 GMT from a previous rate of 1.6340 in the intraday. EUR/GBP fell to 0.8990 from 0.9049.
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