The United Kingdom country-specific exchange traded fund continued to weaken Friday, moving toward its first weekly loss since August, after a Bank of England governor pointed to an end to stimulus.
The iShares MSCI United Kingdom ETF (NYSEArca: EWU) dipped 0.5% Friday. EWU is up 12.2% year-to-date.
U.K. stocks weakened following BOE Governor Mark Carney’s comment that no further stimulus will be required due to the scope of the economic recovery, reports Sofia Horta e Costa for Bloomberg.
“My personal view is, given the recovery has strengthened and broadened, I don’t see a case for quantitative easing and I have not supported it,” Carney said in a Yorkshire Post article.
While an end to stimulus may be bearish for stocks, the BOE’s statement is bullish for the British pound sterling currency, which hit an eight-month high against the U.S. dollar Friday and extended a fourth weekly gain, the longest run in a year, reports David Goodman for Bloomberg.
The CurrencyShares British Pound Sterling Trust (NYSEArca: FXB) rose 0.6% Friday. FXB is 1.6% lower year-to-date.