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12 Feb 2014
EUR/GBP slumps after BoE report
FXStreet (Córdoba) - The EUR/GBP slumped to a 9-day low as the Pound strengthened broadly in the wake of the BoE's Quarterly Inflation Report and Governor speech.
The BoE said it expects the UK economy will expand 3.4% in 2014, much faster than the 2.8% estimated in November. Even though quicker growth could lead to a decline in unemployment rate below the 7% threshold earlier than expected, Carney said they will look at a broad range of indicators to assess the state of the labor market and whether is needed to hike interest rates.
The EUR/GBP fell nearly 40 pips after the report and hit a low of 0.8244 in recent dealings. At time of writing, the pair is trading at the 0.8250 zone, recording a 0.5% loss on the day.
The BoE said it expects the UK economy will expand 3.4% in 2014, much faster than the 2.8% estimated in November. Even though quicker growth could lead to a decline in unemployment rate below the 7% threshold earlier than expected, Carney said they will look at a broad range of indicators to assess the state of the labor market and whether is needed to hike interest rates.
The EUR/GBP fell nearly 40 pips after the report and hit a low of 0.8244 in recent dealings. At time of writing, the pair is trading at the 0.8250 zone, recording a 0.5% loss on the day.