FXstreet.com (Córdoba) - The Sterling strengthened sharply on Wednesday after BoE's King words and dragged EUR/GBP toward a 5-day low of 0.7879 at the beginning of the New York session. From there, the pair has managed to recover some ground and at time of writing it is trading around 0.7895, still recording a 0.5% loss on Wednesday.
Regarding BoE's latest remarks, Stephen Hughes, Director of Currencies.co.uk commented: "While Sir Mervyn King may have waved off the suggestion of an interest rate cut, we'll be watching this very closely as the mere mention of a cut could result in Sterling exchange rates falling against most of the major currencies".
"It is only the severity of the Eurozone crisis that has pushed Sterling Euro exchange rates to a 4 year high so if we start to see some strength back to the Eurozone, then we could see GBP/EUR exchange rates plummet (EUR/GBP surging)", Hughes adds.
Regarding BoE's latest remarks, Stephen Hughes, Director of Currencies.co.uk commented: "While Sir Mervyn King may have waved off the suggestion of an interest rate cut, we'll be watching this very closely as the mere mention of a cut could result in Sterling exchange rates falling against most of the major currencies".
"It is only the severity of the Eurozone crisis that has pushed Sterling Euro exchange rates to a 4 year high so if we start to see some strength back to the Eurozone, then we could see GBP/EUR exchange rates plummet (EUR/GBP surging)", Hughes adds.
