The pound to euro exchange rate is 0.149% lower on the day with 1 GBP = 1.1476 EUR. The pound to dollar exchange rate is 0.324% lower with 1 GBP = 1.5678 USD. Andrew Morris, managing director of Signature, a trading name of Rowan Dartington dedicated to supporting investment professionals and their clients, comments on the possible return of quantitative easing: "Whilst markets staged an encouraging recovery last week (followed by an alarming dip at the start of this week), news after the weekend’s gathering of finance ministers, is something of an anti-climax and still smacks of denial of the Eurozone’s core issues. Furthermore stimulating economic growth or importantly the lack of it appears another area where the investment community differs. Quantitative easing or QE is back on the agenda in the US and now the UK but not in Europe. There is now an increasing likelihood that QE measures will be implemented before the year is out on both sides of the Atlantic. "What will another round of QE bring to markets? Opinion is very mixed on this topic. In the US investors are sceptical given the lack of growth resulting from QE2. However in the UK, whilst not universally welcomed, it would appear that this would be broadly positive for investors if not delivering the desired boost to bank lending. "What do we see happening in the UK? A lowering of Gilt yields with potentially the biggest impact felt at the “long end”, a weakening in Sterling but a further boost for commodities notably oil. Whilst not fundamentally addressing the issues that blight our economy, further QE does read well for equity investors and may well provide a very welcome stimulus to depressed shares prices, as we enter the fourth quarter of 2011. From what we read, this point has not escaped the attention of a number of the global investment houses or us here at Signature." Whilst the members of the MPC may not be getting any medals for solving the UK’s economic woes in the short-term, they may well be the toast of the City come Christmas.

Source