China Aids Risk Sentiment, Pound Goes Up

The Great Britain pound rose today after the Chinese government announced that the report that China is reviewing the foreign-exchange holdings of the euro assets is “groundless”, improving the traders’ risk sentiment.

The announcement was comforting as China is one of the most significant holders of foreign reserves in the world. The State Administration of Foreign Exchange said that China is the responsible long-term investor and Europe has been and will be a major investment market. These news brought the much-needed relief to the markets, helping the pound.

GBP/USD rose to about 1.4515 as of 11:58 GMT today from the opening level of 1.4384. EUR/GBP fell to 0.8452 after opening at 0.8460.

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