The UK pound can’t seem to gain the upper hand against the euro today, even though the eurozone remains in turmoil. Even with the difficulties being caused by Cyprus, euro still has the advantage over the pound.
Earlier this week, the minutes from the latest Bank of England policy meeting were released. They showed that Mervyn King’s suggestion that more stimulus be added to the economy was voted down. Additionally, even the economic reports that were in line with expectations aren’t helping the pound.
Even the turmoil in the eurozone isn’t weakening the euro against the pound. Cyprus is causing all sorts of trouble — mainly for the precedent it sets. While the economy of Cyprus is hardly anything to the rest of the eurozone, the precedent is causing some difficult. Cypriot bankers are urging politicians to strike a deal with the European Union leaders — especially since Russia rejected calls for help.
So, with speculation about the euro breaking up once again rising, some might think that the pound would gain against the euro. However, right now, that isn’t the case. The pound is showing some gains against the dollar, but can’t seem to make inroads against the euro.
At 15:20 GMT GBP/USD is up to 1.5209 from the open at 1.5172. EUR/GBP is up to 0.8529 from the open at 0.8500. GBP/JPY is down to 144.1500 from the open at 144.1950.
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