Surprised Sterling is spreading its magic
January 16, 2007 5:12am CST
Sterling is moving forward with its gains. Last week's surprise hike in the interest rates made the sterling not to look back, its just moving in a very positive way. A financial Analyst at Capital Economics said that the rising trend in output price inflation supported the Bank of Englan'd view that companies were widening their margins in order to recover the profits lost to rising energy prices last year. The rising trend in price inflation is helping the Bank of England to recoup its industrial losses. By mid-afternoon in New York yesterday, the pound climbed 0.2% against the Euro and 0.5% against the Yen and also 0.3% against the dollar. Again it looks like the dollar is slipping. But yesterday, it slipped because the U.S market was on holiday because they were celebrating Martin Luther King holiday. But it will surely recoup itself today. Let's hope for the best.