UK pound is gaining ground against its major counterparts today, thanks to improving data. Pound is doing especially well against the euro, thanks to better economic data and policy divergence.
Sterling is mostly higher today, thanks in large part to recent economic data. Much of the recent data, from PMI to GDP, has been reasonably positive, especially when compared with what is happening in the eurozone. Indeed, the UK pound continues to do well against the euro in Forex trading. Pound is also up against the US dollar, even though the Fed is cutting back on its easing at a faster rate than the Bank of England.
One of the items holding the pound back from even higher gains is the reluctance of the Bank of England to reduce stimulus at a faster rate. The inflation expectation in the United Kingdom was recently cut to 2.5 per cent from 2.8 per cent, and that is reducing the interest in raising rates. However, the situation still looks good when compared with what is happening in the eurozone.
At 11:30 GMT EUR/GBP is lower, falling to 0.7853 from the open at 0.7886. GBP/USD is higher, gaining to 1.5614 from the open at 1.5574. GBP/JPY is a little bit lower, falling to 189.1010 from the open at 189.4550.
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