The UK pound is struggling a bit today, thanks in large part to the fact that all the drivers for sterling are external. There is no major data on the docket for the pound, so sterling is at the mercy of data and announcements from everywhere else. Even so, the UK pound is managing to limit its losses, and even eke out some gains here and there.
One of the difficulties weighing on the UK pound today is yesterday’s GDP data. Many analysts had expected the first quarter’s year over year GDP reading to show an increase of 3.2 per cent, but the reading came in lower, at 3.1 per cent. On quarter over quarter basis, GDP increased to 0.8 per cent, instead of the expected 0.9 per cent.
However, even with these slight disappointments, the UK economy still shows signs of growth that is more robust than what we see with the eurozone and the United States. This reality is limiting some of sterling’s losses, and further strength could be on the way after a period of consolidation and profit taking.
At 13:07 GMT GBP/USD is up to 1.6860 from the open at 1.6827. EUR/GBP is higher, up to 0.8223 from the open at 0.8209. GBP/JPY is lower, dropping to 172.4255 from the open at 172.7150.
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