Pound takes a Pounding after GDP Data!

Monday, October 26, 2009


As Forex online investors expected the UK economy to turn out of recession and into mild growth, the Bank of England announced that the economy had in fact contracted by .4%, making this the longest recessionary period since the 1950’s.

As a result, the British Pound suffered broad losses on Friday and rekindled fears that the BOE would expand its emergency asset purchasing program in November.

At the close, the Pound was down 2.1% to the US Dollar to 1.6304, down 1.3% to the Euro to .9202, down 1.7% to the Swiss Franc to 1.646 and down 1.3% to the Japanese Yen to 149.93.


The Japanese Yen also suffered a dismal day on Friday, after Japanese Banking Minister, Shizuka Kamei, said that the economy needed an infusion of about 10 Trillion Yen in order to help lift the island nation economy out of the steep slowdown.

This prompted fears of out of control debt similar to that of the US economy and took away safe-haven appeal for the Yen.

At the close the Yen traded down 1.1% to the US Dollar to 91.92, down 1.23% to the Euro to 138.02, down .89% to the Australian Dollar to 84.58 and down .87% to the Swiss Franc to 91.08.


About This Blog

Get the latest Forex online news and updates right here at one place.