The British pound climbed half a percent to a four-week peak versus the euro Wednesday following the European Central Bank said it won’t rein in or cut back its €1.1 trillion bond buying program.
Shooting down speculations, ECB President Mario Draghi clarified quantitative easing would remain until September 2016 or inflation was back up to target.
Versus the US dollar, sterling traded at $1.4785. Sterling reached 71.71 British pence per euro.
Certain people thought Draghi would begin talking about tapering, but reassured the central bank’s position “they would be looking to stick to their plans of doing QE until September 2016,” said Angus Campbell, Senior Analyst at FxPro.
Also, the impending May general election has been affecting the currency, which would be expected to yield no outright winner.
The material has been provided by InstaForex Company – www.instaforex.com