UK Pound Down Against US Dollar, But Higher Against Euro

UK pound is down against the US dollar today, but higher against the euro. Once again, the interesting place the UK pound finds itself in is contributing to its mixed performance. The pound is heading lower against the US dollar as risk appetite dissipates, and higher against the euro as the pound represents a European safe haven.

Even after Egan-Jones Rating Company downgraded the UK pound to AA- from AA, the sterling is still higher against the euro in Forex trading. Pound is considered more stable than the 17-nation euro right now, thanks to all the uncertainty in the eurozone regarding what’s next for various countries, and the fact that there is still no solution being presented by eurozone leaders.
Against the US dollar, pound is lower, though. Risk appetite is once again a little scarce. However, there are some hopes from the upcoming G-7 conference call. It doesn’t look as though markets will be in full retreat today, but things are tilted a little lower today with some of the general risk aversion.
At 12:03 GMT GBP/USD is at 1.5339, down from the open at 1.5384. EUR/GBP is lower at 0.8094, down from the open at 0.8125. GBP/JPY is also lower, down to 120.0315 from the open at 120.5150.

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