The Great Britain pound is struggling against other major currencies today. While the outlook for the Bank of England’s monetary policy remains very supportive for the currency, it looks like the last week’s rally is losing steam.
Comments from BoE chief Mark Carney provided strong support for the currency, allowing it to become the best performer on the Forex market last week. Some experts question the reasons for the rally, though particularly against the US dollar. They argue that the Unite Kingdom is very vulnerable to economic problems of Europe due to its strong trading ties to the continent. This means that the UK currency is fundamentally weaker that its US rival.
Released during early Monday’s session, the report from Rightmove showed that UK house prices barely changed in July, as the House Price Index rose just 0.1 percent. This is compared to the jump by 3 percent in June.
GBP/USD traded at 1.5579 as of 16:55 GMT today after opening at 1.5588. EUR/GBP ticked up from 0.6943 to 0.6960. GBP/JPY rose a little from 193.40 to 193.58.
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