The Pound It is being said that the Bank of England could choose to risk doing too much rather than too little this week as Britain starts to trail behind the rest of the world economy. BOE nine-member Monetary Policy Committee will expand its bond-purchase plan by 50 billion pounds to 225 billion on Nov 5 th , this is according to the median forecast of 48 economists in a Bloomberg News survey. That would be the third increase since the Bloomberg started in March. Mean while the pound has held it's position over the weekend. However due to the amount of data coming out, it could be a challenging week for the pound.
The Dollar is expected to remain weak against the majors as improving economic news encouraged investors to leave the safety of the dollar. On Friday, the Commerce Department said that consumer spending dropped 0.5 percent last month, but personal incomes, were unchanged this could help future spending. Consumer spending totals about 70 percent of the U.S. economy. So even though the government said on Thursday that U.S. economic activity grew at a 3.5 percent pace, the best rate of growth in two years and the first increase in more than a year. However worries still remain for future growth amid rising unemployment.
The Euro European Union leaders insisted on Friday that it was too early to withdraw all any stimulus programs. They said they would wait until a full recovery is secured,. They also warned that reforms were needed to prevent high unemployment levels by making labor markets more flexible.
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