EUR/GBP Fundamental Forecast – September 19, 2016

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Published: Sep 16, 2016, 11:56 UTC

The EUR/GBP gained 35 points as the pound tumbled harder than the euro as both currencies remained weak in today’s session. The pair is trading at 0.8528.

EUR/GBP Fundamental Forecast – September 19, 2016

The EUR/GBP gained 35 points as the pound tumbled harder than the euro as both currencies remained weak in today’s session. The pair is trading at 0.8528. Pound slumps as BOE hints at further easing

The pound slumped on Thursday after the Bank of England left the door open for a further expansion of its stimulus efforts.

The central bank left its benchmark interest rate unchanged (http://www.marketwatch.com/story/boe-stands-pat-on-rates- but-signals-a-cut-ahead-2016-09-15) at 0.25%, a record low. It also left unchanged the size of its quantitative easing program at GBP435 billion ($576 billion). Investors had widely expected the central bank to stay put.

Hoping to shield the British economy from the expected fallout from June’s vote to leave the European Union, the central bank launched a stimulus program over the summer that included plans to buy corporate bonds and offer ultra-cheap loans to banks.

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