Monday, September 7, 2009

UBS recommends to sell pound

Pound fell against the euro by 0.1% to 0.8736 in cautious trade ahead of the Bank of England meeting on Thursday. Last month, the old lady with Tridnidl Street was surprised by all the expansion program of quantitative easing to 50 billion f.st. up to 175 billion f.st. This has increased the pressure on the pound, making it the main lagging August. Despite the fact that the pound managed to recover, some believe that if the Central Bank once again announced increased measures to quantitative easing, the currency will resume its decline. UBS recommends to sell pound in anticipation of a decision on monetary policy. "We're going against the general flow and believe that the Bank will add another 25 billion to its program of buying assets."

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