The Pound becomes stronguer boosted by the Bank of England

The pound rose yesterday with strength according to the other currencies thanks to the Bank of England, Last Thursday, the British currency rose by 1′8% in front of the Euro to 1.11€ per pound in their biggest daily rose since January.

Comparing with the yen, the pound won a 3%, something never seen since February, in the case of the dollar, the pound rose by 1,7% to 1,62 dollars per BP.

Building of the Bank of England

The pound was boosted by the speculations pointing the Bank of England, the measures adopted to fight the crisis these month may be stopped and this would increase the value of the pound. Paul fisher, market director of the Bank of England, declared in a interview with financial times that the Bank of England could stop its program of assets repurchase to resume it lather.

In the beginning of August, The Bank of England decided to enlarge its stimulus plan with public and private bonds purchase with 50bn of BP, this set the total amount spent to 175 bn BP

The pause in the extraordinary measures could indicate that British economy begun to grow, think that would explain the recovery of the pound, furthermore, it would suppose drain part of the liquidity central banks like the Bank of England injected to the economy to fight the crisis,so the risk of a meltdown of pounds in the market may decrease.

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