UK Pound Struggles Against Its Major Counterparts

UK pound is struggling against its major counterparts today, heading lower as interest rates expectations weigh. With the Bank of England expected to maintain low rates, there isn’t a whole lot to help support the pound against other major currencies in Forex trading.

The Forex market is buzzing after yesterday’s comments from Bank of England policymakers. Deputy Governor Jon Cunliffe said that the Bank of England could afford to keep interest rates low for longer, and this has reduced the rumors that the MPC is ready to raise interest rates in the near future. Many think that it will be some time before the BOE takes that step.
Right now, inflation remains below the target level for the United Kingdom, so Cunliffe is right that there is no pressing need to raise rates, even though some of the more hawkish members of the MPC have made comments about the need to do so soon. As long as inflation remains well under control, though, the BOE is likely to continue to keep rates low in the name of economic stimulus.
At 10:52 GMT GBP/USD is down to 1.6119 from the open at 1.6129. EUR/GBP is up to 0.7902 form the open at 0.7894. GBP/JPY is down to 174.2820 from the open at 174.4750.

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