The UK pound is turning lower against the dollar today, although it is still holding out against the euro. While there has been some good economic data, there are still concerns about a possible exit from the European Union.
Sterling has been doing fairly well in recent days. GDP readings came in at a 0.5 per cent increase in the fourth quarter of 2015, with a 1.9 per cent year over year improvement. These readings were in line with expectations, and helped the UK pound against its major counterparts.
However, now things are changing a little bit. The prospect of a referendum on remaining in the European Union might take place this year, and the possibility of a Brexit — or at least the uncertainty leading up to the vote — is weighing on the sterling, especially against the dollar.
The UK pound is managing to hold its own against the euro for now, but there is speculation that could change if the ECB adds more stimulus and the eurozone economy picks up.
At 15:10 GMT GBP/USD is lower, falling to 1.4249 from the open at 1.4355. EUR/GBP is lower, dropping to 0.7607 from the open at 0.7621. GBP/JPY is higher, moving up to 173.2550 from the open earlier at 170.5880.
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