Corporate foreign exchange news

Pound 'being pushed down by QE concerns'

Thursday, 08 September 2011 09:03:52 GMT

Published by Jamie Jemmeson
Concerns about the possible introduction of quantitative easing (QE) from the Bank of England (BoE) may have impacted on the British currency as it slipped in foreign exchange markets versus the euro yesterday (September 7th).
According to Reuters, the single currency traded at 88.17 pence, after earlier pushing as high as 88.28 pence, an increase of 0.4 per cent in comparison to the previous day's activity.
Lloyds TSB FX strategist Adrian Schmidt suggested the pound's trade against the euro is in particularly being pushed down by concerns that financial stimulus will be on the agenda for the BoE in its Monetary Policy Committee meeting this week.
Meanwhile, versus the US dollar sterling remained little changed at $1.5936, hovering slightly above Tuesday's $1.5921, its lowest point in seven weeks.
This follows comments made earlier this week to Der Spiegel by the International Monetary Fund's new managing director Christine Lagarde suggesting that a return to a global recession can still be avoided.
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