Sterling rises, gilts fall as BoE leaves policy unchanged

LONDON Thu Nov 8, 2012 5:42pm IST

LONDON Nov 8 (Reuters) - Sterling rose, hitting a five-week high against the euro, while gilts fell on Thursday after the Bank of England left interest rates and its quantitative easing total unchanged.

The decision had been broadly expected after recent stronger-than-expected UK third quarter growth figures but traders said some investors had positioned for the risk that the BoE could opt for more stimulus.

The euro fell 0.2 percent on the day to 79.69 pence, its lowest since Oct. 1, from around 79.88 pence before the decision. It stopped just shy of chart support at the 100-day moving average around 79.64 pence.

The pound rose to around $1.5978 against the dollar from $1.5952 before the BoE decision, though it was still lower on the day and below the session high of $1.5994.

December gilt futures fell by around 12 ticks immediately after the announcement and then continued to fall. At 1202 GMT, they stood at 120.02, down 18 ticks on the day.

Britain's FTSE 100 index edged higher, to trade up by 0.3 percent at 5,809.26 points, having been up by 0.2 percent before the BoE's decision.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage