UK pound is still struggling in currency trading on the FX market today. The UK pound has had a downside for several days now, and it is likely to continue to struggle, until new data can shed some light on what’s next, and what might result in a change in policy.
Right now, the UK pound is down against the US dollar as policy divergence remains the focus. The Federal Reserve is expected to boost interest rates before the end of the year, and that is helping the greenback to some degree. There is no indication as yet as to when the Bank of England will be ready for a rate hike. Inflation remains fairly low, and there might not be room to raise rates as soon as the Fed is planning on it.
On the other hand, BOE Governor Mark Carney is likely to pressure the other members of the MPC to raise rates sooner rather than later after the US hikes its benchmark.
Sterling is holding steady against the euro today, with no change in sight right now. There’s a lot of “wait and see” going on.
At 14:54 GMT GBP/USD is down to 1.5147 from the open at 1.5175. EUR/GBP is holding steady at the open of 0.7410. GBP/JPY is down to 181.7280 from the open at 181.9750.
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