BoE boost Sterling

Wednesday, 11 May 2011 05:37

The Bank of England reported some good news, unheard of in a long time; inflation forecasts went up and boosted the GBP/USD breaking its resistance level. 

The usual downfall and pessimism usually seen by the governor of the Bank of England, Mervyn King, changed today as announcements of a long term rise in inflation plummeted the news today.  It was raised to nearly 2%.  Right after the release the Streling traded at 1.65 against the Greenback.  Currently the pair is trading at 1.6449.

EUR/GBP fell from above the 0.90 zone to 0.87 and is currently trading at 0.8685.

The Dollar and the British Pound are both shining in contrary to the European currency which is stuggling against both.   EUR/USD is trading along the lines of 1.4279, falling drastically from last week's 1.49 level.