UK pound has been ailing recently, and the gains for stocks today are helping remedy that — at least for now. Concerns about the UK economy are on the rise, so the sterling’s gains today may not last.
Sterling is higher almost across the board today, following a couple days of disappointment. UK economic data has been disappointing, particularly the latest CPI data. Instead of showing improvement, CPI dropped to 1.2 per cent in September. This has many speculating that the Bank of England won’t raise as soon as hoped.
Today, though, there is a bit of a change. The pound is gaining as risk appetite makes an appearance in the markets, and as stocks around the world head higher after a few days of carnage. Sterling is gaining ground against its major counterparts for now.
This newfound break might be short-lived, however. The UK economy just isn’t doing as well as many would like. More uncertainty around the world is likely in the coming weeks, and there is a great deal of interest in upcoming general elections in the United Kingdom.
At 10:41 GMT GBP/USD is up to 1.6097 from the open at 1.6087. EUR/GBP is down to 0.7960 from the open at 0.7962. GBP/JPY is up to 171.4850 from the open at 171.0620.
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