UK Pound Loses Ground After Recent Gains

UK pound is losing ground again after recent gains. Sterling is heading mostly lower against its major counterparts as excitement over recent inflation data fades and as the EU referendum once again dominates the spotlight.

Earlier, the sterling was doing well in currency trading on the FX market, making some gains. The recent inflation report, while not providing a huge amount of support, at least offered a boost. Most of that is done away now, and the UK pound is back down against many of its major counterparts.
Worries about the UK economy continue to plague the sterling, as does general risk aversion. Stocks are mostly lower around the world, and that weighs on the UK pound. Not only that, but the recovery for the UK economy continues to move at a slow pace and the BOE is reluctant to raise rates.
Part of the economic concern is related to the possibility of a Brexit from the European Union, which many analysts think would be a disaster for the United Kingdom.
At 13:46 GMT GBP/USD is lower, dropping to 1.4215 from the open at 1.4199. EUR/GBP is higher, moving up to 0.7953 from the open at 0.7961. GBP/JPY is actually higher, moving to 154.4870 from the open at 153.6050.

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