UK pound’s recent sell off seems to be over — for now. Sterling is seeing some success today, helped by positional factors, as well as by a general feeling of risk appetite in the markets.
Today, UK pound is making a mostly strong showing today against its major counterparts. Risk appetite is helping a bit. Equities, by and large, are rallying today. Even though gains by major indices have been somewhat modest, they have still been there. That risk appetite is helping the pound.
Also providing some support to the pound is a look at the overall situation. The eurozone has seen some disappointing data in recent days, and some are beginning to think that the euro’s relative strength against the pound has been a bit unwarranted.
Pound is even gaining against the US dollar right now — in spite of the fact that economic data continues to slowly improve in the United States.
There are concerns that the sterling will be unable to maintain its gains, though. The UK economy continues to struggle, and efforts at stimulus have largely failed; some think that a triple-dip recession could be on the way.
At 15:47 GMT GBP/USD is up to 1.5034 from the open at 1.4920. EUR/GBP is down to 0.8627 from the open at 0.8687. GBP/JPY is up to 144.6365 from the open at 143.3500.
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