Pound drops as English job confidence slides

Posted On: February 11, 2013

The English pound lost value on Monday for the first trading session in four days on foreign exchange markets against the world's reserve currency and the shared currency of the European Union after job confidence dropped last month, according to Bloomberg.

So too did the monetary unit slip against each of its top 16 rivals after analysts indicated additional underwhelming news is on the way. A Tuesday report is likely to state consumer prices dropped last month.

"In the U.K. you have a middling performance in the economy and that's not good enough to help sterling," global head of foreign-exchange strategy Peter Frank with Banco Bilbao Vizcaya Argentaria SA in London told the news source on Monday. "Growth simply isn't good enough. The market had to get out of the net longs."

Wednesday will see the Central Bank of England release inflation and growth forecasts, which also is likely to impact the value of the English pound.

The Scotsman reports outgoing Bank of England President Mervyn King is preparing to leave office in the middle of this year with strong advice that his successor to preserve inflation targets.

Category: Industry News


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