The Great Britain pound dropped after yesterday’s release of the Bank of England’s minutes and extended the decline today. The minutes suggested that some policy makers want more monetary stimulus.
Governor Mervyn King and Paul Fisher joined David Miles in voting in favor of increasing the asset purchase program by £25 billion to £400 billion. Other members of the Monetary Policy Committee outvoted them though. Still, the growing number of central bankers preferring more accommodative policy was viewed as bearish for the sterling.
This year was very negative for the UK currency so far as macroeconomic data did nothing to increase the appeal of the pound. On the contrary, economic indicators were suggesting that the stimulating policy will not end soon and the downside pressure on the currency will intensify.
GBP/USD dropped from 1.5231 to 1.5144 as of 5:42 GMT today and the daily minimum of 1.5128 was lowest since July 2010. GBP/JPY slid from 142.50 to 141.44. EUR/GBP advanced from 0.8716 to 0.8740, while yesterday’s maximum of 0.8762 was highest since October 2011.
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