The British Pound Sterling fell across the board on Wednesday, after the Bank of England’s Governor, Mervyn King, said a slide of the Pound could help UK exporters and aid Britain’s recovery from recession. The remarks came after the UK released data on inflation which came in below the target, a better than expected showing. Investors are nervous however, even with the good inflation news, that after the elections early next year, the new government will implement a policy of fiscal tightening, which will likely cut the asset-buying program, a program that is widely hailed as a success.
At 10:15PM GMT, the British Pound was trading down 1.2% versus the US Dollar to .9288, down 1.02% to the Euro to .9042, down 1.15% to the Japanese Yen to 148.6, down 1.1% against the Swiss Franc to 1.6691 and down 1.06% versus the Australian Dollar to 1.7802.
In a light day of trading due to the Veteran’s Day holiday in America, investors took the opportunity to trade the USD up after early session losses failed to break through key levels. The technical rally also came after Federal Reserve board members said that any recovery in the US economy will be erratic at best. The comments initially caused the downturn of the Dollar in the overnight session but when support levels were not broken, traders took advantage of the light volume to push the Dollar higher.
At 10:20PM GMT, the US Dollar was trading up .12% to the Euro to 1.4973, up .02% to the Japanese Yen to 89.82, down .3% to the Canadian Dollar to 1.0461, up .13% to the Aussie to .929 and up .1% against the Swiss Franc to 1.0082.
Written by Finexo.com