By CountingPips.com
A major story of the day in forex trading has been the British pound sterling and its ascent against the other major currencies. The pound has surged on the comments that the bank’s quantitative easing program has been working and has led to speculation that there could be in end in sight for the QE program. The BOE’s quantitative easing program was first implemented in March and later increased in June to a total of £175 billion and was intended to pump money into the U.K. 
economy through the buying of bonds. The BOE announced with its latest interest rate decision last week that the program is expected to expire in November and has not commented whether there will be an extension.
Bank of England commitee member Paul Fisher told the Financial Times today that he felt the QE program was “having the scale and speed of impact that we would have hoped for when we started” and that “People obviously are expecting us to stop at some stage, and so to a degree it will be priced into the market. Whether we’ll (stop) in November or at some later date may be uncertain.” BOE governor Charles Bean also said on Tuesday that a gradual pullback of the program may be needed as the economy starts back on a positive path.
The pound sterling responded by gaining by over 130 pips against the euro today while jumping over 150 pips versus the dollar. The pound has also advanced sharply versus the Japanese yen by over 300 pips, the Swiss franc by over 250 pips and the Canadian dollar by 400 pips today in the fx markets.
GBP/JPY Chart – The pound breaking out of its recent price channel today versus the Japanese yen in forex trading to trade at its highest level since September 24th.
