Forex Flash: GBP/USD would weaken after QE extension

Forex Flash: GBP/USD would weaken after QE extension

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Forex Flash: GBP/USD would weaken after QE extension - Currencies.co.uk

FITITOL--> FXstreet.com (Córdoba) - Today the Bank of England announced another round of QE which will pump £50bn into the UK economy over the next four months while leaving UK interest rates unchanged at 0.5%.

"As much expected the Bank of England has announced its extension of QE and will be pumping a further £50bn into the UK economy. If experience is anything to go by this does not pose positive news for Sterling", Stephen Hughes, Director of Currencies.co.uk commented. "In the past QE has led to weakness for the pound, with QE increasing supply and lowering value as a result".

"We will be watching the markets closely to see if history repeats itself and would suggest that anyone planning to buy USD or EUR in the short term considers a forward contract to fix the exchange rate at its current level", he concluded.