Pound Trades Higher Against Majors

Pound Trades Higher Against Majors


The pound rose sharply against other major currencies in the European session on Friday after Italy's borrowing costs declined and BoE introduced details of programme aimed to boost lending.
The Bank of England and HM Treasury on Friday unveiled the details of the 'Funding for Lending Scheme', a programme aimed at boosting lending to real economy.
Banks that increase lending to households and businesses will be able to borrow more from the BoE, and that a lower cost.
Moreover, Italy's cost of borrowing for one-year funds declined sharply at a debt auction, indicating that investor sentiment improved after the latest EU summit and the announcement of Spain's new austerity package.
The Italian Treasury raised the targeted EUR 7.5 billion from the sale of its 12-month bills or BoTs. The yield on the one-year paper fell significantly to 2.697 percent from 3.972 percent in the previous sale on June 13.



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