UK pound has found some respite from its downward spiral — at least for now. Pound is higher against many of its major counterparts right now as Forex traders take a break from sending the currency on its plunge.
UK pound has been rather weak recently, plunging lower against other major currencies. The weakness has been rather pronounced, and it appears that, for now, the pound is taking a breather. Today, the pound is broadly stronger, enjoying a break in the sell off.
However, this period of strength might be short lived. None of the factors that contributed to the pound’s earlier struggles have changed. The economy still remains in a precarious position. Additionally, Mark Carney is expected to become the new governor of the Bank of England (replacing Mervyn King). Carney is seen as dovish, and many think that the pound will see further easing with Carney in charge.
More easing would weaken the pound, and it appears Forex traders are already rushing to price the possibility of more easing from the BOE into the beleaguered currency.
At 14:27 GMT GBP/USD is up to 1.5736 from the open at 1.5696. EUR/GBP is lower, down to 0.8560 from the open at 0.8573. GBP/JPY is higher at 142.7785, up from the open at 142.6150.
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