Pound Drops on Talks About Stimulus

The Great Britain pound fell today versus the US dollar and the Japanese yen and traded near the lowest level in four months against the euro before the meeting of the Bank of England’s policy makers to discuss the bonds purchase program.

The policy makers of the Bank of England will meet tomorrow to discuss the necessity of additional stimulus, while the Monetary Policy Committee will set the interest rates. The market tends react negatively on the talks about the quantitative easing, thus the sterling went down.

GBP/USD traded at 1.5891 as of 11:29 GMT today, following the surge to 1.5937. EUR/GBP reached 0.8730, the highest level since May 21st, before falling to 0.8694.

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