UK pound continues to decline as stocks fall and as risk aversion sets in. However, even though these are issues that can weigh on sterling, there isn’t much reason for some of the recent losses. Yes, data has been lackluster, but there aren’t new data prints to warrant the most recent rout for the UK pound.
Right now there is nothing that should be triggering some of the earlier losses seen by the UK pound in Forex trading. Earlier, sterling plunged against the euro and the dollar. While there has been a measure of recovery, the pound is still down overall.
There is some speculation that the earlier drop was triggered by sell orders by big players, which allows for ranges to break down and result in even more sell orders. Things seem to be calming down for now.
Sterling does have some downward pressure, though. Recent data has been somewhat lackluster (although not to the point of warranting a big selloff) and there is trepidation surrounding an upcoming EU membership referendum and the possible Brexit.
At 15:13 GMT GBP/USD is down to 1.4089 from the open at 1.4162. EUR/GBP is higher, moving up to 0.8077 from the open at 0.8040. GBP/JPY is down to 155.1470 from the open at 156.2580.
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