The GBP/USD currency pair rallied higher today after the release of strong UK retail sales data for the month of February by the Office for National Statistics. The British pound rallied higher boosted by the positive retail sales data as opposed to the weaker US dollar as investors exercised caution towards the greenback ahead of crucial House vote.
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
The GBP/USD today maintained the gains made after the release of UK Consumer Price Index data for February released by the Office for National Statistics, which beat expectations. The currency pair was largely unaffected by the better-than-expected US currenct account deficit.
The Great Britain pound rallied last week, not least due to Bank of England’s policy statement that was less dovish than market participants had anticipated. But will the currency be able to maintain gains amid Brexit uncertainty and fears?
The Great Britain pound was mixed during Friday’s trading session, but mostly held onto yesterday’s gains caused by the unexpectedly hawkish policy statement released by the Bank of England.
The British Pound today spiked against its main competitors after the Bank of England monetary policy statement even as the bank hinted at a less dovish outlook. The British pound rallied after the BoE’s Monetary Policy Committee maintained the rate decision and its asset purchase target at the same level, but issued a slightly hawkish economic outlook.
The British pound rose against the US dollar and the euro on Wednesday, to partly recover from the losses it suffered after Parliament approved Theresa May’s Brexit bill. The pound got support from a jobless data release in the United Kingdom, despite the somewhat mixed picture of the labor market that the release painted.
The British pound weakened against major rivals on Tuesday to touch its lowest level since January, after UK lawmakers passed a bill from the British government that paves the way for Brexit. Investors now expect that UK Prime Minister Theresa May will trigger Article 50, which starts talks of exiting the European Union, later this month.
The Great Britain pound rallied during Monday’s trading session as traders were waiting for the news about the Brexit as well as the Bank of England and the Federal Reserve’s policy decisions scheduled to be announced later this week.
The GBP/USD today tested new daily highs after the release of the UK’s production data for the month of January by the Office of National Statistics. The currency pair started the day’s session trading in a range, but rallied higher after the release of the UK’s production data, which had mixed results.
The British pound declined against the US dollar on Thursday, after concerns towards Brexit returned to the market as the end of the current month is expected to be the time when the government triggers Article 50. Chancellor of the Exchequer Philip Hammond released the spring budget of the United Kingdom yesterday, which did not contain mentions of Brexit. However, investors believe that the government is preparing plans to shape the economy of the nation after departing from […]