The Pound Sterling Exchange Rate was in the region of 1.1585 against the Euro as of 11:05 am
Although economists expect that Bank of England officials will leave monetary policy unaltered today the real cause of interest is the presence of future Bank of England Governor Mark Carney, who testifies to UK lawmakers today prior to taking up his post in July.
Carney, in his current role of Governor of the Bank of Canada, has sparked debate in recent weeks after commenting that central banks could do more to boost flagging economies. Now Carney has asserted that in order to progress the BoE has to structure, apply and be able to extricate itself from unconventional fiscal policy in such a way that it boosts public confidence.
After extracts of Carney’s written testimony were made public the Pound gained against all of its most traded peers. But he still has questions to answer.
As one industry expert stated: ‘It’s all eyes on Carney, and from a market sensitivity perspective, it’s critical. The Monetary Policy Committee is in a bit of a limbo position since they can’t do more quantitative easing before he comes in and their view is it doesn’t really work anyway. It’s a good position in a way because it gives them cover not to have to do anything’.
Meanwhile another economist asserted: ‘People are probably going to be more interested in what Carney has got to say at this stage because there aren’t high expectations for any action from the MPC’.
The Pound may go on to benefit further from other UK news.
Since data revealed that the UK economy returned to contraction in the final quarter of last year fears that it may enter an unprecedented triple-dip recession have been mounting. However, the most recent services and manufacturing data has hinted that recession may be avoided, and today’s industrial production figures have contributed to bolstering that view. In December UK manufacturing output experienced its biggest monthly increase since July 2012, advancing 1.6 per cent – twice the forecast amount.
Current GBP Exchange Rates
The Pound Sterling to Euro exchange rate is currently trading at 1.1585
The Pound Sterling to US Dollar exchange rate is currently trading at 1.5723
The Pound Sterling to Australian Dollar exchange rate is currently trading at 1.5214
The Pound Sterling to New Zealand Dollar exchange rate is currently trading at 1.8781
The Pound Sterling to Canadian Dollar exchange rate is currently trading at 1.5622
The Pound Sterling to Emirati Dirham exchange rate is currently trading at 5.7736
The Pound Sterling to Swiss Franc is currently trading at 1.4280
The Pound Sterling to Japanese Yen exchange rate is currently trading at 147.5800
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