iPath GBP/USD Exchange Rate ETN (GBB) - NYSEARCA
  • Oct. 24, 2011, 1:34 PM
    Two months ago voting for tighter monetary policy before last month voting for QE, BoE member Martin Weale thinks the knock-on effects the Continent could lead to negative GDP in the U.K. in Q4. This goes beyond the bank's own forecast of flat growth, and shows the extent to which this former hawk has changed his feathers.
    | Oct. 24, 2011, 1:34 PM
  • Oct. 21, 2011, 9:57 AM
    The pummeling of the dollar may be the most important news of the day, which sniffs of additional Fed QE rather than Europe having solved its issues. A speech last night from the Fed's Daniel Tarullo arguing for additional MBS purchases looks to be the catalyst.
    | Oct. 21, 2011, 9:57 AM
  • Oct. 18, 2011, 3:09 PM
    The Guardian reports France and Germany have reached agreement to boost the EFSF to €2T, part of a "comprehensive plan" to drive a stake through the continent's debt crisis. Officials hope to get endorsement of the deal this weekend. Stocks and the "risk" currencies are shooting higher on the news.
    | Oct. 18, 2011, 3:09 PM | 6 Comments
  • Oct. 18, 2011, 12:46 PM

    "Seeking inflation to solve real problems... doesn't work. The instinct will be to do a little more - a seemingly temporary and 'reasonable' 4% becomes 5, and then 6, and so on." Jeremy Warner urges the BoE to pay heed to those words from Paul Volcker following today's CPI print of 5.2%.

    | Oct. 18, 2011, 12:46 PM | 1 Comment
  • Oct. 18, 2011, 6:48 AM
    U.K. September inflation rises 0.6% to a Y/Y rate of 5.2% vs. expectations for 0.4% and 4.9%. August's inflation rate was just 4.5%. The BoE, currently in the early stages of a massive QE operation, continues to forecast a sharp fall in inflation in 2012. Cable is little changed at $1.5740.
    | Oct. 18, 2011, 6:48 AM
  • Oct. 13, 2011, 12:05 PM

    "We expect the (U.K.) debt/GDP ratio to remain on an explosive path no matter what the government does," writes fund management firm LGIM, expecting a hit to the nation's AAA rating. Meeting growth targets would require the "biggest private sector boom ever" to compensate for massive government austerity.

    | Oct. 13, 2011, 12:05 PM | 1 Comment
  • Oct. 12, 2011, 5:38 AM

    The number of unemployed people in the U.K. rises 114K to 2.57M in June-August, the highest total since the three months ending October 1994. The unemployment rate increases to 8.1% from 7.7% in the three months ending May 2011. (PR)

    | Oct. 12, 2011, 5:38 AM | 1 Comment
  • Oct. 11, 2011, 3:27 PM

    Old research from the BoE finds little link between low interest rates - which strangle corporate pension funds - and corporate investment and hiring. However, the research predates recent tougher pension regulations. Citi's Michael Saunders says more current data tell him sustained low rates are likely to have an adverse effect on business activity.

    | Oct. 11, 2011, 3:27 PM | 3 Comments
  • Oct. 11, 2011, 8:39 AM

    The U.K. August Index of Production rises 0.2% from the previous month, but sits 1% lower Y/Y. The manufacturing sub-index declined 0.3% - the 3rd consecutive fall. "Not a great number," says an economist; "there's no sign of these problems going away."

    | Oct. 11, 2011, 8:39 AM
  • Oct. 10, 2011, 7:56 AM
    European shares are staging a tepid rally (Stoxx 50 +0.6%) in the wake of news Merkozy is planning a plan and the Dexia nationalization, but the euro is romping, +1.5% vs. the dollar to $1.3575. The greenback is sharply lower against nearly all of the major currencies, the dollar index -1.2%.
    | Oct. 10, 2011, 7:56 AM | 1 Comment
  • Oct. 9, 2011, 8:20 PM

    Fresh off the BoE's £75B QE2 announcement, member Martin Weale suggests the central bank is just getting started. "There is quite a lot of scope for further QE," he says. Just 4 months ago voting for policy tightening, Weale says, "since the summer (there has been) a sharp deterioration in Britain's economic prospects."

    | Oct. 9, 2011, 8:20 PM | 1 Comment
  • Oct. 7, 2011, 4:31 PM

    U.K. investors are left wondering how to play that country's QE2 as an initial drop in Gilt yields and the pound was reversed when equities around the world rallied. In that move lies the answer. U.K. financial assets are beyond the power of the BoE's printing program - their moves will be dictated by world appetite for risk.

    | Oct. 7, 2011, 4:31 PM
  • Oct. 7, 2011, 10:32 AM

    Already the gorilla in the Gilt market, BoE QE purchases over the next 4 months will outstrip issuance by £60B. Unintended consequences: Lower yields mean increased deficits at pension funds reducing corporate profits as they need to pay more into them. Citigroup estimates the BoE may own half the entire market by the time all is done. This may not end well.

    | Oct. 7, 2011, 10:32 AM
  • Oct. 7, 2011, 8:44 AM
    The dollar is diving against most major currencies. The euro crosses above the $1.35 level for the first time this month. The loonie is the big winner so far today, +1.2%, as the NFP number combines with a big beat in the Canadian employment report.
    | Oct. 7, 2011, 8:44 AM | 1 Comment
  • Oct. 6, 2011, 8:39 AM

    A bit of perspective on the Bank of England's £75B in additional QE. At current exchange rates and given the ratio of the size of the U.K. economy to the U.S. economy, the move is the equivalent of the Fed launching a $750B QE program. Bazooka indeed.

    | Oct. 6, 2011, 8:39 AM | 1 Comment
  • Oct. 6, 2011, 7:34 AM

    The BoE's additional QE receives the approval of the U.K. Treasury, which is considering its own QE. "Dear Mervyn, Further asset purchases provide the ((BoE)) with the appropriate tool with which to address the deteriorations in economic conditions ... the Treasury is exploring further policy options (to) complement the ((BoE's)) asset purchases."

    | Oct. 6, 2011, 7:34 AM
GBB Description
The GBP/USD exchange rate is a foreign exchange spot rate that measures the relative values of two currencies, the British pound and the U.S. dollar. When the British pound appreciates relative to the U.S. dollar, the GBP/USD exchange rate (and the value of the Securities) increases; when the British pound depreciates relative to the U.S. dollar, the GBP/USD exchange rate (and the value of the Securities) decreases. The GBP/USD exchange rate is expressed as a rate that reflects the number of U.S. dollars that can be exchanged for one British pound in the interbank market for settlement in two days. Effective December 18, 2008 the GBP/USD exchange rate will be the rate reported each day on Bloomberg screen GBPUSD WMCO Curncy <GO> at approximately 4:00 p.m., London time, or any successor page.
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