UK Pound Declines against US Dollar

UK pound is declining against the US dollar today, thanks to general risk aversion weighing on high beta currencies, as well as disappointing economic data out of Great Britain. Against the euro, sterling is struggling as well, although there have been swings between gains and losses.

The lastest UK housing data has been disappointing, showing that February housing prices were down 0.5% from the previous month. The news is discouraging to many, who are looking for signs of an improving UK economy. Retail sales data has also disappointed recently. With these signs of economic slowing, it is little surprise that the pound is struggling.
However, it’s not just British economic data weighing on the pound — especially against the US dollar. The UK pound is also declining as risk aversion sets in. Concerns about what’s next in the Greek drama (debt swaps are scheduled for later this week) have Forex traders reluctant to favor high beta currencies. Even with this trouble, though, the pound isn’t able to log solid gains against the euro. Instead, EUR/GBP remains around the same level as at open, occasionally dipping lower, or moving slightly higher.
At 15:47 GMT EUR/GBP is at 0.8332, very slightly higher than the open at 0.8331. GBP/USD is lower at 1.5745, down from the open at 1.5865. GBP/JPY is also lower at 127.1740, down from the open at 129.3925.

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