The Pound declined against the Euro and the Dollar on Friday as market expectations continued that the UK will be the last of the major countries to withdraw its aggressive monetary policy due to its poor economic performance. Also to note weekend press reports that UK rates could be on hold until 2011 which could reinforce the weak sterling tone.
The Dollar made gains against the Pound while declining against the Euro as the Dollar continues to be out of favour with currency traders due to the current ultra-low interest rates which are expected to remain in place for some time yet, increasing investor appetite in higher-yielding currencies. Also to note the Fed's Bernanke that indicated that monetary policy may have to be tightened as a recovery takes hold.
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