The Great Britain pound rose against the euro and erased its losses versus the US dollar as fears of Europe’s troubles drove investors to the relative safety of the UK currency. The sterling retreated a little against the greenback today and continued to fall versus the Japanese yen.
The elections in France spooked Forex traders and made them search for a refuge. The possibility of early elections in Netherlands added to concerns. Some of market participants found haven in Britain’s currency.
The United Kingdom has its share of problems that may affect the pound negatively in the future. On the other hand, Britain’s economy looks to be improving somewhat. Analysts predict that gross domestic product rose 0.1 percent in the first quarter of this year. That’s not fast growth, but still is better than the decline by 0.3 percent in the previous three months.
GBP/USD was at 1.6121 as of 00:43 GMT today after rising from 1.6120 to 1.6131 yesterday. EUR/GBP traded at about 0.8158, following yesterday’s slump from 0.8176 to 0.8158. At the same time, GBP/JPY fell from 130.92 to 130.84.
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