The British pound made significant gains against major currencies as Theresa May, the UK’s prime minister confirmed that the country will opt for a hard Brexit. The British pound gained almost two cents against the US dollar and also recorded significant gains against the euro and the Japanese yen.
Great Britain Pound GBP
Central Bank: Bank of England
Public Debt to GDP Ratio, 2015: 90.6%
Trade Balance, 2015: -$175.1 bln.
Inflation, 2015: 0.1%
Global reserve currency
Currency of international trade
Factors of Weakness
United Kingdom's exit from the European Union
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
Fears of the “hard” Brexit continue to drive the Great Britain pound, which opened sharply lower on Monday after the weekend article from The Sunday Times.
The Great Britain pound rose today (though the gains were very limited) following the rather optimistic speech from Michael Saunders, Bank of England policy maker.
The British pound moved lower on Thursday on increased concerns about a speech British Prime Minister Theresa May will give next week. Traders worried that May’s speech, which was announced today, will suggest a hard Brexit for the United Kingdom.
The British pound declined on Wednesday, as traders felt more anxious about the future road of Brexit. Recent comments from UK Prime Minister Theresa May increased fears of a hard Brexit and overshadowed strong economic data.
The Great Britain pound remained weak during the current trading session following yesterday’s comments from Britain’s Prime Minister Theresa May even though she claimed that media misinterpreted her words.
The Great Britain pound fell against its most-traded peers, dropping to the lowest level since October against some rivals, during Monday’s trading as comments from Britain’s Prime Minister Theresa May fueled concerns about the “hard” Brexit.
The British pound had some minor gains against the dollar on Wednesday, while remaining largely unchanged against the euro. The British currency benefited from fresh data that showed improving construction sector and higher consumer credit in the United Kingdom.
The British pound touched its lowest level in two months against the US dollar on Tuesday, as the greenback gained more strength against its main peers. Traders expect the US currency to continue its strong performance in the first quarter of 2017.
There was minimal upward movement in the Great Britain pound despite positive economic data released today by the Office for National Statistics indicating that the UK economy was experiencing positive growth. The pound rose briefly against other currencies such as the euro and the US dollar before retracing its gains.