Once again, the UK pound is struggling in Forex trading. As the economy continues to lose steam, and as concerns mount that an upcoming referendum will end the United Kingdom’s participation in the European Union, the sterling is heading mostly lower today.
There isn’t a whole lot of support for the UK pound today. Recent economic data indicates that the economy is losing steam. The latest Services PMI reading from Markit missed the forecast by quite a lot, and there are other data misses impacting the UK economy. With these indications of slowing for the British economy, there is less of a chance that the Bank of England will raise rates anytime soon. Policy divergence with the United States continues to be an issue.
Not only that, but there is uncertainty over whether or not the United Kingdom will remain a part of the European Union. While Great Britain has managed to stay out of the currency union, the possibility of a Brexit is weighing on the sterling, as consequences are expected to severe with that course of action.
At 15:18 GMT GBP/USD is down to 1.4177 from the open at 1.4220. EUR/GBP is higher, moving up to 0.7735 from the open at 0.7731. GBP/JPY is down to 161.1730 from the open at 125.2720.
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