Bank of England Tempers Quantitative Easing, Sending Sterling Higher in Forex Trading

[GFTforex]

U.K. pound gains against the greenback in currency tradingThe sterling is moving higher in forex trading on the currency market against the U.S. dollar as the Bank of England announces that it will slow its quantitative easing program. Even though the BoE has kept interest rates unchanged (as did the ECB), policymakers announced that they will raise the quantitative easing program by 25 billion pounds.

This is significant, since many expected that the quantitative easing program would be expanded by 50 billion pounds. This is an indication that the Bank of England thinks things are going relatively well in terms of economic recovery, and that they are easing stimulus measures, and possible preparing to exit.

On this news, it is little surprise that the sterling spiked in forex trading. Against the greenback, the U.K. pound is moving higher in currency trading, looking to find support above the 1.6600 level. Also helping the sterling in forex trading is the fact that the FTSE 100 is higher, and U.S. stocks are poised for a higher open.


See Also

• U.K. Pound in Currency Trading
  Forex trading on the currency market