EUR/GPB at 0.8430 as Output Climbs and BOE Maintains Policy

The pound strengthened the most in a week against the euro as U.K. industrial production expanded in March and the Bank of England refrained from adding stimulus measures that tend to debase a currency.

Sterling gained for the first time in three days versus the shared currency as the Bank of England maintained its asset-purchase target, known as quantitative easing, at 375 billion pounds ($581 billion) and kept interest rates at a record low. The central bank is due to release its latest economic analysis and inflation projections on May 15. The pound fell against the dollar after the number of Americans filing claims for jobless benefits unexpectedly dropped.

“Industrial production was better than expected and that caused a bit of a bounce higher” in the pound, said Kathleen Brooks, research director in London at, a unit of online currency-trading company Gain Capital Holdings Inc. (GCAP) “Much more important for the pound is going to be next week’s inflation report.”


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.