UK pound is struggling today, heading lower against many of its major counterparts, as the recent rally fades. Expectations that the Bank of England would be among the first to start boosting rates again have helped strengthen the pound, but the situation has leveled out and the pound is lower.
Even though the recent British PMI reading was better than expected, the recent rally seems to be coming to a close for the sterling. According to Commodities Futures Trading Commission, bullish bets on the UK pound have recently to highs not seen since just before the financial crisis.
As a result, some think that demand for the pound is reaching its peak, and there isn’t a lot of reason to buy. Sterling has seen a great deal of success recently, with its improving economy and expectations of a rate hike from the Bank of England.
However, some of the enthusiasm has waned a bit. There is profit taking, as well as the realization that the Federal Reserve will probably start raising rates as well, making the pound less unique in that regard.
At 12:48 GMT GBP/USD is down to 1.7119 from the open at 1.7169. EUR/GBP is up to 0.7940 form the open at 0.7919. GBP/JPY is down to 174.4140 from the open at 175.2350.
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