Wednesday morning saw the Pound lose ground against the US Dollar as the Bank of England (B0E) minutes were released. In his last speach Sir Mervyn King announced that the bank would inject a further £50bn into the economy through its Quantitative Easing (QE) programme. However, this morning’s data has shown that two of the nine Monetary Policy Committee (MPC) members actually voted for a £75bn boost.
How does this affect the GBP/USD cross?
As soon as the data was released we saw rates drop across the board, the GBP/USD reacted by dropping briefly into the $1.56 level before recovering back into the low $1.57’s. With two MPC members voting for further stimulus it shows that some still believe the UK to be on fragile ground and believe the BoE should increase its asset purchasing programme. So far the bank have pumped £325bn into the economy since the UK credit crisis began.
With the recent gains from the from the Greek bailout and the positive data that has come out of the UK (retail sales and public sector borrowing) it shows how quickly the markets can move against you.
How can I protect myself from falling exchange rates?
There are a number of ways I can look to help you, one of these is with a ‘Stop-Loss’ order. It can limit any losses to you in a falling market yet keep your position open for you to capitalise should the market do the opposite and move in your favour.
What could affect the Dollar today?
After a quiet couple of days in the US US
If you are looking to buy or sell dollars in the coming weeks click here to send a no obligation enquiry and I can look to help you make the most from your currency exhange.
