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CURRENCY NEWS - Euros to Pounds Sterling

Currency News - The British Pound (Sterling) advanced on
Wednesday 23rd July following the minutes being revealed from the
Bank of England's monetary policy committee revealed a surprising
three-way split on how best to advance for the UK interest rates.

The minutes from the Bank of England's July meeting has shown that
Timothy Besley voted for a 25 basis point rise to 5.25% to combat
inflation, while David Blanchflower voted for a cut. Yet the rest of the
committee (7 further members) voted to keep the rate at 5%.

Although nothing has been implemented it shows the tone of the
meeting and suggests a likelihood of possible rises should inflation
stay showing a nominal increase. The market expected a slight drop,
but for the mass of the committee voting for a 'rate hold' suggests
that in future months the expectancy to stay or increase is probable.

This probability that the UK Pound and the UK Monetary Policy,
governed by the Bank of England, could show in the August meeting
to show an increase in Sterling rates.

Economists however are still speculating that the UK rates would,
however, remain on hold, given the fact that forthcoming UK
economic data – including Thursday’s retail sales figures – were likely
to support recent evidence that UK economic momentum was slowing.

Such evidence in confirmation would mean that there maybe too
much haste in chasing the 'pound' currency rates higher.

Nonetheless, the close of the New York exchange saw the pound at
£0.7853 against the euro. The pound also advanced against the
dollar, rising 0.3 per cent to $1.9977, even as the US currency
continued to benefit from comments by US officials on Tuesday.

On the New York Stock Exchange the dollar rallied following a
comment by Hank Paulson, the US Treasury Secretary. He
commented that a strong dollar was very important to US interests.
Although an obvious comment he followed by reassuring investors
that they were forging ahead to implement solutions for the US
mortgage crisis.

Currency - Pounds - Dollars - Euros - were all given a slight boost
following a drop in oil prices on Wednesday 23rd. The dollar rose
against the Yen, Euro and Swiss Franc

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