The Bank of England has decided to increase its Quantitative Easing (QE) in 50 billion pounds. They are being really coherent with their analysis. They want growth and inflation (to get rid of the astonishing debt), even though they say the opposite.

The result should be a further decline on the GBP, but... against the euro? In our Twitter (@simplynorisk) we have published the weekly chart of EURGBP with the Bollinger bands. So far, it looks like a nice rebound because the euro is calmer. According to our model, the fair value of the cross should be 0.8506, and we are around that.

Next post is going to be related to yen and its own QE.