23 July 2009

Currency Investors head Cautiously back to the Pound

The UK pound has taken some bullish behaviour from investors and currency traders on the news that the MPC will maintain its asset purchase scheme at 125billion GBP. This put an end to speculation and fears over what would happen and caused better interest in the UK's currency.

Recently, the pound has suffered as investors have shied away from its high risk - and headed back to the US dollar safe ground. But now, with an undoubted improvement in sentiment coming from the Bank of England, markets are noting an improvement in the sterling's status.

According to the Bank, UK growth slowdowns are all but diminished and inflation is only slightly above target - meaning there is a good chance that the country is on the road to recovery.

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