Latest Exchange Rates At Time Of Writing
Indicative Rates Sell Buy
GBPEUR 1.1362 1.1390
GBPUSD 1.5895 1.5920
EURUSD 1.3973 1.3995
The Bank Of England has become the focus point of many factors which are rising in importance today. The chances of quantitative easing are on the rise and the recent economic slips which are on the move to make it possible. These are the moves that are being taken to make this endeavor highly successful. A change in policy from the MPC can be seen during this last month mainly because two important reasons. Details of the upcoming Quarterly Inflation Report due in early November was believed to keep the matter on hold for a long time. This is the same case with the foreign exchange market.
The inflation rate has gone much above the MPC’s 2% target which has become a source of economic crisis making one member of the MPC, Andrew Sentance, to vote for increased interest rates. But his vote would be just the single one amidst the huge ‘hawk’ camp. US would get another chance to prove itself as is apparent from the decision of MPC’s one more Federal Reserve meeting. There are hopes of additional monetary stimulus in the US next month which is giving a ray of hope to the entire market.
There are very little chances of ECB meeting though there have been talks which promote chances of minimal policy modifications. Trichet has thought of coming in defense of periphery EU debt which has been in the attempt to after the downgrade of Ireland by Fitch which was done day before today. The specter of bailing out has been on the run to haunt and traumatize Ireland to a great extent and as a result of this its consumer confidence has gone down to a great extent. There are many rating agencies which help you to get through the process and that too of foreign exchange in an easy fashion.