Thursday, November 4, 2010

GBP: The Bank of England will probably still refrain from expanding the program QE

As AUD or EUR, pound also attracted buying interest of Asian central banks, which move away from the currency that the central bank is prepared deliberately to belittle, namely the dollar. While the helicopter pilot Ben presses the button QE sharply a second time, is becoming increasingly likely that Mervyn King and other members of the monetary committee will refrain from additional purchases of assets after the meeting today. Although, of course, is not protected against the backdrop of significant reductions in public spending, the economic recovery exceeds expectations in the previous two quarters this year. In addition, unlike the U.S., inflation remains above 3% and is unlikely to fall soon. If the dollar will lose support in the coming weeks, then sterling will feel more confident. Maximum cable for this year is the level of 1.6360, set in mid-January.

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