Forex Trading: British Pound Getting Hit Hard Across The Board

The GBP continues to get hammered across the board following some very cautious statements from the BoE’s King and an Inflation Report noting slow UK recovery.  The GBP/USD has hit a fresh session low of 1.5159 as the pair is moving down to the 100 Hour Moving Average.

BoE’s King: UK in worse position than many other countries

- Economy needs a period of healing
- Output decrease reflects decline in confidence
- Adjustments taking place in an uncoordinated fashion
- UK savings rate will need to rise

BOE QUARTERLY INFLATION REPORT: SEES RELATIVELY SLOW RECOVERY, CPI BELOW 2% UNTIL 2012
- Economy aided by stimulus plan and weaker GBP
- Uk economy still vulnerable to further shocks