UK pound is getting a boost against its low-beta counterparts today, thanks to the latest decision from the Bank of England. A touch of risk appetite is also helping the pound against currencies like the dollar and the yen, but the euro continue to dominate the pound.
The Bank of England announced earlier today that it would keep the rate at 0.5%, and that it would keep its asset purchases at the current level. There is speculation that sluggish growth in the UK economy might mean an increase in quantitative easing down the road, and that could lead to weakness.
But, for now, the maintenance of the status quo is helping the pound against the US dollar and the Japanese yen. However, pound remains lower against the euro. The 17-nation currency is receiving a vote of confidence, and that is helping matters for the euro, especially when compared with the UK economy.
For now, though, pound is likely to remain higher against low-beta currencies as a bit of confidence returns to the market following the latest US initial jobless claims data, and as equities gain ground.
At 19:10 GMT GBP/USD is up to 1.5026 from the open at 1.5019. EUR/GBP is up to 0.8727 from the open at 0.8634. GBP/JPY is up to 142.6050 from the open at 141.2750.
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