Wednesday saw the English pound slip against the world's reserve currency as the Bank of England convened to ponder additional monetary stimulus during two days of meetings, Bloomberg reports.
Policy makers are reviewing whether they will support more stimulus to prompt economic growth and development. The English pound fell to its lowest value since July 2010 against the U.S. dollar.
Outgoing Bank of England governor Mervyn King said the Royal Bank of Scotland should be split up, according to Sky News.
"The way to minimize losses is to restructure the bank and get a healthy RBS back into the private sector," King said, according to Sky News, as he awaits retirement this summer. "It would clearly mean having a plan to create a healthy unit capable of attracting lending. It means a number of activities on the balance sheet need to be separated. Accepting that and facing up to the reality would be the right way forward."
Monetary stimulus in the U.K. presently amounts to 375 billion pounds and analysts view additional easing as pushing that total past 400 billion pounds.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
