This week was not particularly good for the Great Britain pound. The currency was flat versus the Japanese yen, which itself was very weak, and fell against other major currencies, including the US dollar and the euro.
The sterling started the week soft due to fundamental data that was not particularly good. The currency extended losses as the minutes of the latest Bank of England monetary policy meeting showed that UK policy makers are not in a hurry to raise interest rates. There were some good economic reports too, but most of indicators were bad and the currency retained weakness till the end of the week.
The pound’s weekly drop followed the week of a very strong rally, and the decline was nowhere as big as the previous gains. It means that this week’s drop may be nothing more than a correction after the currency has rallied too far too quickly. Yet the fact that economic data was mostly worse-than-expected is troubling and may lead to further weakness of the sterling.
GBP/USD slid from 1.6766 to 1.6636 during this week, while its weekly high of 1.6822 was the strongest since May 2011. GBP/JPY opened at 170.40 and closed at 170.63. EUR/GBP climbed from 0.8174 to 0.8256, rebounding from the weekly low of 0.8157 — the lowest since January 10.
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