Yesterday, the UK pound went on a tear, heading higher against the majors. Today, though, the tables have turned a bit. Sterling is lower almost across the board, and Forex traders are considering what the next move by the Bank of England will be.
Thanks to the absence of more economic data, as well as remarks indicating that the United States could see the tapering of its asset purchase program delayed, the UK pound saw some solid gains yesterday. Today, though, those gains are disappearing as the UK pound begins to waver again.
Earlier in the week, lackluster data related to trade and industrial production weighed on the pound. It’s also not helping that there are indications that the Bank of England is open to additional stimulus. Many are uncertain about what Mark Carney will do as the new Governor, and that is causing a little weakness as well.
Yesterday, though, the lack of more bad data, and the fact that things were taking shape elsewhere, prompted a surge in the sterling. Today, that enthusiasm is gone. Focus is back on the ailing economy, and there is likely some profit taking as well.
At 13:15 GMT EUR/GBP is up to 0.8629 from the open at 0.5626. GBP/USD is down to 1.5088 from the open at 1.5183. GBP/JPY is down to 149.9010 from the open at 150.2530.
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