British Pound Sterling Sets New 15 Year High
January 23rd, 2007 by Ian
One pound gets two dollars? Almost. Just before 8AM EST this morning the British pound reached 1.9917 dollars. This makes it the highest it’s seen since 1992, and is very close ( about 200 pips or two pennies away) to a 26 year high from back in 1982! Numbers have been strong out of the United Kingdom with both housing and GDP numbers beating expectations. The surprise rate hike from the Bank of England was also a key element for traders with the suddenness showing signs of further rate hikes.
Take a look at this article on Bloomberg:
“By responding early to changes in the inflation outlook, the monetary policy committee ultimately needs to raise interest rates by less than would be the case if we delayed,'’ he said. “Future action will depend upon how those risks to the inflation outlook materialize.”
