The Great Britain pound fell against the US dollar and the euro during the current trading session as market participants were betting on monetary easing from the nation’s central bank at this week’s policy meeting.
The Great Britain pound sterling (usually called simply “pound” or “sterling”) is the currency used in the United Kingdom and in British territories. Banknotes were introduced following the creation of the Bank of England in 1694, but the history of the currency can be traced long before that, making the pound the oldest world currency that is still in use. The sterling was the most important currency in the world before the World War I. After the World War II had broken out, several countries (for the most part those that belonged to the British Empire) either introduced the pound as their own currency, or pegged their currencies to the sterling. These countries have become know as the sterling area. The importance of the UK currency and the sterling was diminished after the pound was allowed to float freely in 1972. Subsequently, the role of the major world medium of exchange passed to the US dollar. It is still the fourth most traded currency after the dollar, the euro and the yen. The pound is also used as a reserve currency.
Great Britain Pound News Archive
The Great Britain pound sank to new multi-year lows today as Britain’s decision to leave the European Union made investors shun the currency.
The Great Britain pound managed to carve out gains during the Monday’s trading session even though Britain’s construction sector logged an unexpected decline in June. The currency has trimmed its gains but is trading above the opening level at the present time.
The Great Britain pound was attempting to recover during the past trading week following the previous week’s Brexit shock. But it failed to do so due to the prospects for monetary stimulus from the nation’s central bank.
The Great Britain pound tanked today, ending the two-day rally, after the chief of the nation’s central bank signaled that monetary easing may be required to help Britain weather the impact of leaving the European Union.
While the Brexit vote had an impact on all currencies, the Great Britain pound (unsurprisingly) has borne the brunt of Britain’s decision to part with the European Union. The currency touched a new 31-year minimum versus the US dollar and also dropped to new lows versus many other currencies.
The major event for the week, overshadowing all others, was the referendum in Great Britain. And it resulted in a shocking outcome — Britons voted for leaving the European Union. Unsurprisingly, the Great Britain pound crashed hard after the result of voting had become clear.
The Great Britain pound continued to soar against other most-traded currencies, particularly safer ones like the US dollar and the Japanese yen, as prospects for the Brexit had waned significantly.
Britain’s upcoming referendum about membership in the European Union remains a hot topic in the news and speculations of market participants. Many analysts advise to stay away from the Great Britain pound ahead of the event.