The monetary unit of England edged down in value against the world's reserve currency on Wednesday after having touched its top value in about six years on Monday, according to Bloomberg.
So too did the pound dip against the shared currency of the European Union during the midweek trading session. The losses are somewhat unusual given the pound has risen against all 16 of its top rivals during the past 12 years. Those gains are linked with confidence about the Bank of England being the first major central bank to close economy-spurring stimulus measures.
"The currency is up on a trade-weighted basis almost 10 percent in the last year," economist Kevin Daly with Goldman Sachs in London told Bloomberg on Wednesday. "That leads us to expect that while growth will remain strong, it will moderate to some extent as the year goes through."
The pound edged down roughly 0.1 percent against both the greenback and the euro on Wednesday.
The Independent reports policy makers with the Bank of England are likely to leave interest rates at 0.5 percent when they convene on Thursday.
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.
