Over the past 2 weeks, the British pound has soared more than 8 percent against the U.S. dollar. Like many countries around the world, the U.K. has succumbed to higher gas prices but unlike some other countries, the weakness of the British pound has exacerbated the rise in inflation. Hotter consumer prices helped to [...]

Posted in 2009 british pound forecast, Bank of England, British Pound, Forex Technicals, Mervyn King, forex blog, quantitative easing 3 Comments »

The British pound has fallen to a 7 year low against the US dollar and a record low against the Japanese Yen. Over the past 3 trading days, the GBP/USD has dropped more than 1000 pips or 7 percent. Consumer prices were hotter than the market expected, so what has fueled this aggressively [...]

Posted in 2009 british pound forecast, Bank of England, British Pound, Forex Technicals, GBPJPY, Mervyn King, eur/gbp, forex blog 3 Comments »

The Bank of England is expected to cut interest rates by 50bp on Thursday to 1.50 percent, an all time record low, yet the British pound is rallying.
This bizarre price action stems from the fact that pound traders are looking beyond the rate cut and onto the BoE’s aggressive efforts to revive the [...]

Posted in 2009 british pound forecast, Bank of England, British Pound, Mervyn King, forex blog No Comments »

The British pound is on a tear even though the minutes from the most recent monetary policy meeting indicates that the BoE toyed with the idea of cutting interest rates by more than 150bp.
The markets are ecstatic about the Bank of England’s proactiveness even if it means that UK interest rates will probably [...]

Posted in Bank of England, BoE rate cut, British Pound, Forex News, Mervyn King, forex blog No Comments »

The British pound was hands down the best performing currency today as it rose against the US dollar, Euro and Japanese Yen. This was partially due to dollar weakness and the expectation that tomorrow’s consumer price figures will be hot.
Like the rest of the world, the UK has not been immune [...]

Posted in Bank of England, Inflation, Mervyn King No Comments »