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UK Pound Weaker on Economic Data

August 1, 2012 at 14:19 by Miranda Marquit

UK coins on banknotesCentral bank decisions are on the way this week, but that isn’t helping the UK pound much. Indeed, another dismal manufacturing report is dragging on the pound today. The UK recession seems to be deepening, and there is no way that the Olympics are going to be able turn things around.

UK pound is headed lower today, as concerns about the economy rise. Housing data, as well as manufacturing data, are pointing to more economic weakness. Against other majors, the pound is dropping as better news seems to come out of other countries.

Hope has been expressed for the eurozone, which means that the euro is headed higher against the pound. Additionally, there doesn’t seem to be any indication that the Federal Reserve is ready to pull the trigger on QE3, so the US dollar remains stronger against the pound.

Forex traders will be waiting for the latest from the Bank of England tomorrow. However, the latest might not be enough. The economy is languishing, and the government leaders seem reluctant to use government spending as a way to kickstart things.

At 14:15 GMT GBP/USD is down to 1.5605 from the open at 1.5678. EUR/GBP is up to 0.7884 from the open at 0.7849. GBP/JPY is down to 122.0270 from the open at 122.4750.

If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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