UK Pound Mixed as Forex Traders Look for Direction

UK pound is mixed in Forex trading today, falling against the euro, but higher against the US dollar and the Japanese yen. This development follows choppy trading earlier, in which high beta currencies were mostly lower, and the pound gained against the euro. Even though things seem to have turned around a bit, though, pound is struggling to retain its recent gains.

Forex traders are looking for direction as they vacillate between disappointment and optimism. There is still a lot to consider, though. The eurozone still has plenty of hurdles to overcome, and concerns about have the euro paring some of its earlier gains against the UK pound. Sterling is also paring some of its gains against the US dollar as worries about what European finance ministers will actually be able to accomplish balance against high hopes for the future.

Last week, the Bank of England expanded the asset purchase program while keeping the interest rate the same. The result of this quantitative easing is likely to be some weakness for the pound, although continued disappointments in the eurozone could lead to gains against the euro, even as the pound drops against the dollar.

At 14:11 GMT GBP/EUR is up to 0.7925 from the open at 0.7922. GBP/USD is up to 1.5500 from the open at 1.5479. GBP/JPY is up to 123.4425 from the open at 123.2550.

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