Today the Great Britain pound started to recover from the week-long losses against the other major currencies, such as the U.S. dollar, euro and the Japanese yen.
Thats quite a surprise for the Forex traders, because yesterday BoE reduced the official Bank Rate by 0.25% and the pound was falling down strongly, especially against dollar. The only currency which reversed against pound yesterday was euro (ECB held the rates at the same level, but hinted a further possible decline).
Perhaps, the expected rate cut by the Bank of England has been already included into the market rates and there was just a speculative rally against pound after the monetary policy release. If so, then today pound is trying to recover the loss that wasnt based on fundamentals.
GBP/USD climbed up from 1.9427 to 1.9493 today, while GBP/JPY rose from 208.73 to 209.75 and EUR/GBP declined to 0.7433 from 0.7455.
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