By TraderVox.com
Tradervox.com (Dublin) – The Great Britain pound strengthened against the greenback prior to Bank of England’s monetary policy committee meeting to be held today. The meeting is expected to decide whether to extend the stimulus package to boost economic growth.
The sterling has fallen against the euro from a five-week high as reports from the country provide mixed signals of economic recovery. The BOE has announced 375 billion pounds in quantitative easing aimed at boosting the economy since 2009. Data released last week showed that the UK economy grew by one percent in the three months from July through to September.
According to a market survey, the monetary policy committee will maintain its target for quantitative easing. There is a section of the market analysts that expects the bank to make an additional 50 billion pounds.
The sterling strengthened against the greenback as data released on Tuesday showed shop-price inflation rose in October. The retail sales report indicated an increase of 1.5 percent in a year. The prices rose one percent in September.
The pound has been on the rise this year, increasing by 1.2 percent according to correlated weighted indexes. In the same period, the euro has fallen by 3 percent, while the greenback shaved 2.2 percent.
In the same period, reports show that UK gilts have returned 2.7 percent. German gilts added 3.5 percent while US bonds were at 1.8 percent.
The UK currency increased on Tuesday against the dollar by 0.2 percent to trade at $1.6031 at the start of trading. The currency lost 0.2 percent against the euro to trade at 80.25 pence per euro. The pound had strengthened to its strongest since October 2 of 79.84.
Investors are waiting for the BOE meeting today and the Australian employment data which is expected to show unemployment in the country increased by 0.1 percent.
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