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Pound Stagnates, Lacking Direction. The Fault Lies with the Bank of England.
The British Pound has struggled to find direction in 2011. After getting off to a solid start – rising 4% against the US dollar in less than a month - the Pound has since stagnated. At 1.625 GBP/USD, it is now at the same level that it was at five months ago. Given the paltry state of UK fundamentals, the fact that it still has any gains to hold on to is itself something of a miracle. The Pound’s failure to make any additional headway shouldn’t come as a surprise. First of all, the Pound is not a safe haven currency. That means that the only chance it has to rise is when risk is “on.” Unfortunately, the ... (full story)