Pound Heads Lower Against US Dollar, Euro

Great Britain pound is lower today, heading down against most major currencies, including the euro and the US dollar. Pound is struggling on recently banking center developments, as well as demand for other European assets.

A recent wholesale credit rating downgrade of a number banks in the US and Europe is weighing on British markets, and on the pound. Britain is a world banking leader, and heavily exposed to banking risk. On top of that, shaky economic data for the United Kingdom is putting downward pressure on the pound.
Additionally, recent bond auctions in Europe have also contributed to a lower pound on the Forex market. Recently, British gilts have been seen as safe haven investments in a Europe where German bunds struggle. However, a recent Italian bond auction was considered a success, and the most recent French and Spanish auctions also showed some improvement. With demand for other European assets rising, the demand for British assets is fading — and the sterling fading as well.
For now, a combination of factors is likely to contribute to UK pound weakness, even though currencies like the euro and loonie are showing improvement against the US dollar.
At 17:32 GMT, GBP/USD is lower, down to 1.5694 from the open at 1.5704. EUR/GBP is higher at 0.8585, up from the open at 0.8568. GBP/JPY is very slightly lower, down to 121.8835 from the open at 121.8950. GBP/CAD is down to 1.5946 from the open at 1.5979.

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