UK pound is moving higher against the US dollar today. The British currency is also seeing gains against the Canadian dollar. However, even though UK pound is getting a boost for now, the future of the sterling might not be so rosy.
Today, the UK pound is getting help from the fact that the latest US economic data was a bit disappointing. The economic situation is putting a little pressure on the greenback, and the dollar has been dropping against high beta currencies like the pound this entire week.
However, even though the sterling is finding some traction today, the long-term forecast for the UK pound is not quite so rosy. The fundamentals of the pound are relatively weak, and many are waiting to see what happens when Mark Carney takes over as head of the Bank of England. Some expect that the pound will head lower against the Canadian dollar when Mark Carney moves across the Atlantic.
As the economy continues to struggle in the United Kingdom, and as monetary policy becomes increasingly constrained, quantitative easing is all the BOE has — and that means future weakness for the pound.
At 15:56 GMT GBP/USD is up to 1.5399 from the open at 1.5333. EUR/GBP is down to 0.8520 from the open at 0.8524. GBP/CAD is up to 1.5569 from the open at 1.5553.
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