UK pound has slipped against the US dollar, even after a stronger week that saw sterling reach highs not seen in five years. Since the end of a strong week, the pound is down against the dollar to start a new week. It is also down against the yen, and even slightly lower against the euro.
Last week, expectations that an interest rate hike will come from the Bank of England sometime in the relatively near future helped the sterling gain ground. Interest rate differentials are important right now, and the fact that the Federal Reserve seems to be waffling a bit, and the European Central Bank is likely to continuing easing, means the upper hand belongs to the pound.
However, the recent rally for the pound seems to be stalling. There aren’t major economic reports expected from the United Kingdom this week, and better economic data from the United States could help the dollar. And, indeed, the greenback is rising against the sterling today. Some of that may be due to profit taking, though.
At 13:32 GMT GBP/USD is lower today, dropping to 1.7008 from the open at 1.7017. EUR/GBP slightly higher, moving up to 0.7992 from the open at 0.7987. GBP/JPY is also lower, falling to 173.2725 from the open at 173.7450.
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