UK Pound Higher after Dropping Earlier

UK pound is higher in the currency market against the US dollar, after dropping earlier today. In earlier trading, UK pound fell against the US dollar on Greek worries and the expectation of poor PMI data. Now, though, things are turning around and the sterling has the upper hand.

Earlier, disappointing news threatened the UK pound. PMI data was set to come in worse than expected, but when it came in it wasn’t as bad as some thought it would be. The index fell to 53.8 February, below the expected dip to 54.9. Few had actually expected the PMI to maintain its January reading of 56.0. The news disappointed some, but soon the market was taking the news with a little bit of optimism, and the pound is now up against the dollar.

Even earlier concerns about Greece seem to be fading away. Concerns that Greece will not meet its deadline on Thursday are influencing Forex traders to some degree, but the worry seems to be fading a little bit. Risk appetite is returning as high beta currencies like the pound gain against the US dollar. Additionally, pound is dropping against the euro as some optimism returns to the eurozone.

At 14:14 GMT GBP/USD is up to 1.5871 from the open at 1.5838. EUR/GBP is higher at 0.8337, up from the open at 0.8329.

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