Sterling Lower in Currency Trading

U.K. pound edges lower in forex trading

Sterling is a bit lower in currency trading today, thanks to the latest from the Bank of England. The latest BOE minutes show a rather stubborn continued focus on lower interest rates and quantitative easing. FX Street reports on the effect of the BOE minutes on the U.K. pound in forex trading:

The pound continued to dribble lower yesterday as the market continued to digest the Bank of England’s November Minutes. The news that the BOE is continuing to place weight behind a plan to cut the interest rate that commercial banks receive on deposits was the major unexpected sentence in the minutes and has hurt sterling accordingly.

Of course, the losses by the sterling are limited, since the retail sales for October were stronger than expected. There is some expectation that the forex trading forecast for the sterling will see a turnaround relatively soon, since its losses have been small, and the greenback’s gains have been limited lately. The markets aren’t offering the same large currency trading swings that have been seen recently.