UK pound is struggling a bit right now. Some disappointing data is contributing to the situation, and, as a result, the pound’s strength is waning a bit.
Sterling is struggling a little bit today, losing ground to the euro and the yen especially, even though it is currently higher against the US dollar. One of the issues with the UK pound was a sell order triggering stop loss trades yesterday, but there are also some less technical reasons for the pound to struggle.
One of the issues right now is the fact that it looks as though the housing market is cooling down a bit, and that is likely to slow the economic recovery. This means that, perhaps, the Bank of England won’t increase its interest rate as soon as expected. A lot of the sterling’s recent strength can be laid at the door of expectations that the BOE would have to tighten its monetary policy soon, but now that might be off the table.
For now, the pound is pulling back a bit, and looking for new direction.
At 13:24 GMT GBP/USD is up to 1.6720 from the open 1.6710. EUR/GBP is higher, up to 0.8136 and 0.8133. GBP/JPY is lower, moving down to 170.0680 from 170.1950.
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