UK pound continues to gain ground against the US dollar today, after yesterday’s upbeat performance. Even though there are some factors that would normally put downward pressure on the sterling, the British currency is doing well enough today.
Yesterday, Mervyn King, the Bank of England governor, made some comments that were downright optimistic when compared to what he has said recently. He mentioned that he though that recovery would “come into sight” by the end of 2013. While triple-dip recession concerns remain an issue for the UK economy, the hope of recovery is fueling some of the sterling’s gains against the US dollar.
There isn’t a lot to support the UK pound today, though. Even though better economic data in the United States suggests some risk appetite on the hope of recovery for the world’s largest economy, risk assets aren’t getting a lot of help. Stocks are lower in Europe and the United States. But, there is enough dollar weakness right now to help high beta currencies.
What happens next, though, is another matter. The economic situation around the world is still a matter of much interest and speculation.
At 14:16 GMT GBP/USD is up to 1.5134 from the open at 1.5085. EUR/GBP is up to 0.8629 from the open at 0.8620. GBP/JPY is up to 145.1000 from the open at 144.9850.
If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.
