UK pound is regaining lost ground against the US dollar today. Earlier, sterling fell against the greenback after the release of the latest PMI data. Now, though, the UK pound is gaining against its low beta counterparts as risk appetite soars.
The latest economic news out of the United Kingdom was somewhat disappointing, with the Construction PMI at 62.6. Estimates for February had put the PMI at 63.2, so the lower reading sent the UK pound lower against its major counterparts.
Now, though, the pound has recovered against the dollar and the yen and is moving higher as risk appetite returns to the markets. Concerns over Ukraine have eased just a little bit, and stock markets around the world are recovering — a situation that is usually positive for the pound.
Also, Canada has announced that it’s adding UK pound assets to its foreign exchange account. This means more demand for the pound, and that is helping sterling gain a some of its lost ground from earlier.
At 14:18 GMT GBP/USD is up to 1.6697 from the open at 1.6657, and recovered from its earlier low of 1.6640. EUR/GBP has pulled back to 0.8240 from the open at 0.8243. GBP/JPY is also higher, moving up to 170.1110 from the open at 168.8915.
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