ECB`s Decision Spurs the EUR for a Jump

Yesterday the ECB announced it would lend banks 75.2 billion euros for a year term at the current interest rate of 1%. The number appeared to be lower, than it was anticipated by the experts. The EUR/USD currency pair achieved the level of 1.4634 from 1.4581 point marked on Tuesday. Loose economic policy measures encourages traders who use trading software to choose risky assets for trading.

The unexpectedly low PMI report added to a mixed results of U.S. data released Wednesday, including an improved second-quarter U.S. GDP report, but disappointing U.S. jobless claims, confirming investors' speculations that a sustained economic recovery won't take hold.

The GBP has continued its further falling against other currencies traded on the Forex currency market, unable to shake off the comments by Mervyn King Bank, the Bank of England governor that a weak Pound would be an advantage for the U.K.'s recovery from the global downturn. In today's trading the GBP is at $1.5942 versus the USD.

Today the ministers of finance of EU countries meet in Sweden to discuss further direction of the European economy.

Forex Market Update. GBP/USD

In Asian trading GBP traded to 1.6660, and just under the high this month and for the year at 1.6662. The improvement in the GfK consumer confidence figures released earlier today seemed to support the sterling.
The Bank of England information on lending shows the banking system remains frozen, with net mortgage lending in May at record lows.
As for GBP, a rejection of the 1.6662 level risks a retreat in sterling, possibly back to the base of the 1.6200-1.6600 range that has held for much of the month. Pound rebound from USD1.6505 sees rate pressuring up against resistance level ahead of USD1.6530. Above here and rate can edge on USD1.6540/50 ahead of USD1.6560 and stronger interest placed toward USD1.6580.