UK pound is weakening right now on uncertainty. Concerns about what’s next for the British economy, as well as speculation about what will happen with the eurozone, are weighing on the pound today.
Yesterday, the pound got a bit of a boost after the manufacturing PMI came in higher than expected. British manufacturing PMI came in at 49.5 in August, representing an increase from July’s 45.2. The number still represents a contraction (it’s below 50), but it also means that things aren’t as bad in the United Kingdom as expected.
Today, though, the pound is struggling a bit. Uncertainty over what happens next is holding the sterling back. An interest rate decision is coming this week, along with a policy statement from the Bank of England. And, even though the United Kingdom isn’t part of the eurozone, the expected announcement of a plan to save the euro and stem the debt crisis tide from the ECB will affect the British currency.
With so much uncertainty, the pound is faltering a bit, and heading lower on the day.
At 12:49 GMT GBP/USD is down to 1.5874 from the open at 1.5886. EUR/GBP is a little bit lower, thanks to uncertainty in the eurozone, falling to 0.7917 from the open at 0.7928. GBP/JPY is a little higher, at 124.4910, up from the open at 124.2850.
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