After showing some strength recently, UK pound is once again on the back foot. Concerns about the latest homebuilding data are weighing on the sterling, as are worries about what will happen with the upcoming EU referendum.
Sterling got a bit of a boost not too long ago, but those gains are fading as concerns about what’s next for the United Kingdom come into focus.
Construction data indicates that homebuilding grew at its weakest pace in more than three years. This is just another piece of a slowing puzzle that has been weighing on the UK economy.
On top of lackluster economic data, the sterling is also struggling on the uncertainty surrounding an upcoming referendum about membership in the European Union. Even though the United Kingdom isn’t part of the common currency region, it is a part of the EU. Polling shows that the sides are fairly evenly split, and there is a lot of uncertainty over what could be next, and that is affecting the sterling’s performance in Forex trading.
At 13:24 GMT GBP/USD is lower, dropping to 1.4198 from the open at 1.4264. EUR/GBP is higher, gaining to 0.8008 from the open at 0.7984. GBP/JPY is dropping down to 156.9040 from the open at 158.8150.
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