Pound slides after incoming BOE chief commentary

Posted On: January 28, 2013

The value of the English pound dropped for a third consecutive trading session against the common currency of the European Union on Monday as a consequence of commentary by the incoming central bank chief, according to Bloomberg.

Sterling dropped to its 13-month low against the 17-nation monetary unit after an industry report noted home prices in the U.K. fell this month as compared to one year prior. Mark Carney, presently the chief of the Bank of Canada who will assume the lead role with the Bank of England in July, said worldwide central banks should implement monetary easing policies as needed.

"The market judges what Carney said as being dovish," currency strategist Roberto Mialich with UniCredit Global Research in Milan told the news source on Monday. "Economic reports out of the U.K., especially the GDP data, have not looked very encouraging. The pound is likely to remain under pressure."

The Financial Post reports Carney, also the chair of the Financial Stability Board, said on Monday in Zurich that reforms to which global leaders devoted their allegiance four years ago are yet to be fulfilled.

Carney made the remarks at a press conference after the FSB convened.

Category: Industry News


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