UK pound continues to weaken in Forex trading, thanks to a number of factors. One of the concerns about the pound is that the recent optimism about the economic recovery has been a bit much. Some analysts think that the pound is overvalued, and that it will head lower for the long term.
UK pound is lower against the euro and the dollar today, dropping as analysts consider the situation. Pound had received a boost earlier this week, thanks to better than expected economic data. Now, though, some believe that the enthusiasm was a bit overdone, and that there is still plenty of room for improvement.
Pound is heading lower as the optimism shifts in favor of the euro. Additionally, pound is struggling against the US dollar as the latest Fed minutes make it clear that tapering is likely to begin sometime before the end of the year. With the euro and the dollar poised to find support in improving economies, the lackluster gains by the UK economy just aren’t going to cut it.
At 14:29 GMT GBP/USD is down to 1.5575 from the open at 1.5661. EUR/GBP is up to 0.8557 from the open at 0.8529. GBP/JPY is the main bright spot for the pound, gaining to 153.7200 from the open at 152.9750.
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