UK Pound Mostly Lower on Continued Economic Weakness

UK pound is mostly lower today, thanks in large part to economic weakness. Economic reports point to continued difficulties in the United Kingdom, and that is leading to expectations of more easing — and continued weakness for the pound.

Economic reports continue to threaten the British economy with a triple-dip recession. The Bank of England has been asked to do what it takes to stimulate the economy, and that might mean an increase in quantitative easing efforts down the road. Additionally, many are looking forward to the “Carney trade,” when Bank of Canada head Mark Carney replaces Mervyn King as the head of the Bank of England this summer.

For now, the pound is mostly lower against its major counterparts. After seeing some gains earlier, sterling is down against the US dollar. Pound is also losing ground to the euro and to the Canadian dollar. The only major currency the pound is gaining against is the Japanese yen, which has its own issues with weakness as aggressive easing is expected at any time.

At 14:54 GMT GBP/USD is down to 1.5283 from the open at 1.5311. EUR/GBP is higher, rising to 0.8519 from the open at 0.8473. GBP/CAD is losing ground, falling to 1.5582 from the open at 1.5583. GBP/JPY is up to 151.0795 from the open at 150.3250.

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