IBT: Pound Drops on Governor King's Comments Regarding Economic State
The EUR was mainly higher against the Dollar Tuesday following a report suggesting that the U.S monetary stimulus program is likely to remain in place the longest among the countries which adapted similar programs. Furthermore, the German Ifo Institute's November business climate index exceeded investors' expectations. .
Late Tuesday, the EUR was at $1.4965, compared with $1.4968 late Monday and at ¥132.49, down from ¥133.22. The U.K. Pound was at $1.6586, down from $1.6615. The pound also fell against the EUR yesterday, trading at 90.25 pence per EUR after falling 0.2%, on speculation the U.K. Central Bank will extend its asset purchase program after Bank of England Governor Mervyn King said the U.K. economy faces "profound challenges".
The release of U.K's Revised GDP at 9:30 GMT today is expected to show a slight improvement, however, if results are worse then expected the GDP may exacerbate its downward trend.
