UK pound is moving higher, consolidating after yesterday’s gains. Sterling is heading higher today, in line with market movements. However, the pound isn’t making any big moves, as there are still a lot of questions that need answering, and the UK economic outlook is far from certain.
For the most part, UK pound is rangebound today. Even though the currency is consolidating recent gains after yesterday’s recovery, a big move is not likely for the British currency. Indeed, big moves are not expected for any currency, since many Forex traders are waiting for the beginning of the central banker symposium on Friday in Jackson Hole. The speech from Federal Reserve Chair Ben Bernanke is highly anticipated.
As a result, most currencies are taking it easy. Pound is likely to see limited support, since there are not any high expectations for the economy. So far, the economic recovery in the United Kingdom has been basically non-existent. Without further stimulus from the Bank of England, there are questions about what will happen next. The downside for the pound remains very much intact.
At 13:03 GMT GBP/USD is up to 1.5841 from the open at 1.5819. EUR/GBP is down to 0.7922 from the open at 0.7941. GBP/JPY is higher, moving up to 124.5370 from the open at 124.1950.
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