Pound Reaches 7-Year High Versus Euro as ECB Reveals QE Program
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The pound rose to its strongest level in almost seven years against the euro as the European Central Bank said it would inject more than 1.1 trillion euros ($1.2 trillion) into the eurosystem through buying debt in the region.
Sterling’s third weekly advance versus the common currency was helped when the U.K.’s unemployment rate fell to a six-year low and December retail sales unexpectedly rose. The pound declined to the lowest level in 18 months against the dollar as minutes from the Bank of England’s latest policy meeting showed officials voted unanimously for the first time since July to hold interest rates at record lows. U.K. government bonds rose, with 10-year yields touching the least since August 2012.