The Great Britain pound slid against most of its major peers today as Forex market participants are becoming increasingly concerned that growth momentum of the UK economy is waning, making the sterling less attractive as an investment vehicle.
Britain’s currency was under pressure lately as economic indicators painted much bleaker picture of the UK economic health than they were doing before. Today’s data did nothing to improve the traders’ sentiment towards the British currency as construction output shrank 1.1 percent in May from the previous month. This reading was nowhere near the expected increase by 0.8 percent.
Most of the pound’s strength relied on investors’ confidence in resilience of Britain’s economy, and the recent reports hurt that confidence significantly. While some analysts argue that the sterling remains in a bullish trend from a long-term point of view, in a shorter term the currency definitely lost its shine.
GBP/USD fell from 1.7132 to close at 1.7121. The currency pair demonstrated the first weekly drop since May. GBP/JPY ticked down from 173.60 to 173.47. EUR/GBP was up from 0.7943 to settle at 0.7948.
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