Exchange rates Bank of England
The Pound Sterling’s exchange rate has been unaffected so far this week as Mervyn King’s term as Bank of England Governor ended; he is to be replaced by the now former governor of the Canadian central bank Mark Carney.
Bank of Canada Governor Mark Carney said on Monday he will be glad to embrace the top role at the Bank of England at a critical time for the British and European economies.
Carney, whose BoE appointment is effective July 1, 2013, also said his continued role at the Global Financial Stability Board will reinforce reform efforts in the City of London.
Exchange rates remain largely range bound in the lead up to a big week for UK data.
Public inflation expectations in Britain for the next 12 months fell to 2.8 percent in November from 3.0 percent in October, expectations for the next 5-10 years also fell which has led to fresh speculation that the bank of England could add more quantitative easing.
The Euro to Dollar exchange rate dropped and retreated from a seven-month high versus the Japanese Yen as market participants pared bets in favour of the Euro as markets awaited word on whether Greece will secure crucial loans needed to pay off its debt.
Euro zone finance ministers and the International Monetary Fund began their third attempt in as many weeks to release emergency aid for Greece, with policymakers saying a write-down of Greek debt is off the table for now.
Germany's deputy finance minister said he expected Greece's international creditors to strike a deal later on Monday on unfreezing loans for the heavily indebted country.
The Euro remains under pressure until the bailout has been agreed.
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