There isn’t a lot of help for the UK pound in forex trading today. With recent data disappointing analysts, and with the Bank of England still not taking any action, the sterling is down almost across the board today.
Sterling is losing ground to most of its major counterparts today as concerns about what’s next for the currency weigh. First of all, the drop in PMI to 56.2 from 58.7 was a bit of a setback. For the most part, the UK economy has been showing solid signs of recovery, and this was disappointing.
As expected, the Bank of England left interest rates steady. However, the PMI report, and the fact that no one from the BOE is indicating that rate hikes are coming anytime soon, are combining to drag on the pound a bit.
Some think that the pound is undervalued against the euro, however. The UK economy remains robust when compared with the eurozone economy, and the fact that the euro seems to be doing well against the pound right now has some stumped, and sure that the pound is underperforming and will gain soon.
At 11:45 GMT GBP/USD is down to 1.5821 from the open at 1.5834. EUR/GBP is up to 0.7836 from the open at 0.7816. GBP/JPY is down to 182.2560 from the open at 182.3550.
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