Spread betting provider City Index takes a look at the financial activity shaping the markets on 13th October 2011.
Sterling fell against the dollar today (October 13th) as apprehension among traders grew after Bank of England comments to the press and publication of UK economic data ufabet.
As of 13:58 BST, the British pound was trading down at $1.5674 in what remained only a moderate drop for investors.
The move followed comments made by Bank of England monetary policy committee member Charlie Bean to the Guardian newspaper.
In the interview, Mr Bean said that the current round of quantitative easing might be expanded in the near future, if required.
“If we need to undertake further asset purchases, then we will do so,” he said.
The comments followed data released on Wednesday that revealed UK unemployment to have reached its worst level since 1994, which led to a loss of investor confidence.
Despite this, City Index chief market strategist Joshua Raymond felt that a weak pound could prove an advantage.
Mr Raymond pointed to the news that “export values hit record levels in August,” as the catalyst for a positive future.
“Quantitative easing could keep the pound weak and this could encourage greater UK exports, giving a positive lift to growth prospects,” he said.
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