The British Pound fell broadly against its major currency pairs today, following the Bank of England’s (BOE) decision to pause its 200 billion-Pound bond purchase plan. The decision to put a halt to the plan, the first time such a move has been made since its inception last March, was seen as a tactical move in order to gauge the British economic recovery. Furthermore, the BOE is apparently worried about future inflation as well as what will happen with the British budget deficit following the upcoming elections in May.
Following the decision, the Pound fell against both the Yen and U.S. Dollar. GBP/JPY tumbled from 142.50 earlier today, to its current level of 140.45. Similarly, GBP/USD went from 1.5860 in mid-day trading, to its current level of 1.5750.
Tomorrow, traders will want to pay attention to the British monthly PPI Input report, set to be released at 09:30 GMT. The report measures the difference in prices of goods and raw materials, and is seen as a major indicator of British economic health. With a predicted rise over last months figure, Sterling may be able to recoup some of it’s loses from today.
