UK pound is finding some strength today against the US dollar and the Australian dollar. Sterling is rising against the greenback as risk appetite makes an appearance, and gaining against the Aussie as the news about China continues to weigh on the Down Under currency.
UK pound has been struggling recently, thanks in large part to an unpopular budget announced by George Osborne. Concerns about the fact that the budget cuts spending, as well as taxes, are weighing as it appears that there won’t be much to help stimulate the economy.
Today, though, sterling is seeing some success. While the British currency is losing ground to the euro, it is gaining against the US dollar. Greenback is under pressure today as gold prices bounce back, and as a measure of risk appetite returns. This general risk appetite is helping the UK pound.
Against the Aussie, the pound is getting help from the fact that China is showing signs of slowing growth. Australia is a major trading partner with China, and with Chinese demand in doubt, the Australian dollar is pulling back, leaving room for the sterling to gain.
At 14:16 GMT GBP/USD is at 1.5837, up from the open at 1.5818. EUR/GBP is up to 0.8352, up from the open at 0.8342. GBP/AUD is gaining, moving up to 1.5258 from the open at 1.5209.
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