Sterling cracks from Friday that were glossed over on safe haven flows deepened today thanks to Bank of England Governor Mervyn King. Complete with a GDP downgrade for 2012, King’s inflation report weakened sterling across board. However, currency pairs like the $GBPCAD, $EURGBP and $GBPAUD are holding up quite well in the aftermath. General commodities weakness and euro woes continue to benefit GBP verus these currencies. These same conditions also benefited the USD as the $GBPUSD closes below 1.60 for the first time in 4 weeks.
- Bank of England Inflation Report presser: live blog (FT)
- Euro crisis a threat to slow UK recovery – BoE’s King (Reuters)
- UK’s Cameron: Eurozone Must Act Or Face Break Up (Forex Live)
- GBPUSD Update (50’s Blog)
- GBPUSD Bounces Off The 38.2% Of 2012 Range (Forex Live)
- GBPJPY Update (50’s Blog)
- Bundesbank Confirms German Gold Held By FED, BOE and Banque De France (Zero Hedge)