UK pound is losing ground today, heading lower on risk aversion, as well as on disappointing economic data. There is a bit of concern about what’s coming next for the global economy, led by the United States, and that is weighing on the sterling to some degree.
UK pound is a little bit lower today, thanks to some disappointing news. First of all, the Services Sector PMI data for the United Kingdom came in below forecasts. As a result, concerns about the UK economy are on the rise again, and that is weighing on the pound in the Forex market.
Additionally, risk appetite has disappeared in the Forex market. Risk aversion is on the rise again with the latest indication from the Federal Reserve that bond purchases may end. Without the stimulus provided for the US economy, there are concerns about what may be next. For now, that means more interest in the US dollar for now.
Forex traders should consider that the pound should get a little support in coming weeks, since the Bank of England is expected to stay away from further monetary easing.
At 16:47 GMT GBP/USD is down to 1.6041 from the open at 1.6107. EUR/GBP is up to 0.8136 from the open at 0.8101. GBP/JPY is a little higher at 141.4295, up from the open at 140.5150.
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