Sterling Set to Close Much Lower on the Week

UK pound continues to struggle in currency trading, and this week looks to end on a low note. Even with signs that the economy could be improving, the sterling is still down against its major counterparts.

One of the biggest stumbling blocks for the pound is the fact that it doesn’t look as though inflation is going to be an issue for the UK economy, and the Bank of England isn’t ready to raise rates anytime soon. Indeed, BOE Governor Mark Carney confirmed that base rates won’t be raised until the end of next year at the earliest. As a result, the sterling is taking a beating, even though unemployment continues to fall and other measures look somewhat better.
Some analysts think that the recent selloff is overdone, however. There are those who feel that the pound’s losses shouldn’t be so steep, and that the sterling is due for a bit of a rebound — at least against the euro. Right now, the sterling is down against almost all of its major counterparts, and it looks to end the week on a much lower note.
At 11:41 GMT GBP/USD is down to 1.5658 from the open at 1.5711. EUR/GBP is up to 0.7950 from the open at 0.7943. GBP/JPY is up to 182.3550 from the open at 181.8900.

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