Sterling rises, gilts fall as BoE leaves policy unchanged
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.
- Tweet this
- Share this
- Digg this
- Google launches new email service dubbed "Inbox"
- Lax security in focus after attack at Canada's parliament
- Canada's parliament attacked, soldier fatally shot nearby
- China's Xiaomi shifts some smartphone user data out of Beijing on privacy concerns
- Attack on parliament, killing of soldier stun Canada's capital
India could allow commercial coal mining by foreign companies if they set up units in the country, opening the door for global giants like Rio Tinto to access the world's fifth largest coal reserves, a source familiar with the matter said. Full Article