UK pound is losing ground today, even though the good news out of China is providing a little bit of support. For the most part, Forex traders are in wait and see mode, with no major economic data out of the United Kingdom expected for the rest of the week, and with low volume in general, stemming from holidays in the United States and Japan.
UK pound is a little bit lower, in spite of good news out of China. While risk appetite has made it natural that the euro should be gaining the upper hand, it is somewhat surprising to see the pound losing ground to the US dollar and the Japanese yen.
However, there are some reasons. The members of the MPC at the Bank of England seem to be in wait and see mode, with further quantitative easing on hold for now. Recent economic data seems to point to some improvement, but those improvements are relatively small, and do not indicate widespread recovery.
There are still a lot of questions, and just enough uncertainty that the pound is likely to struggle for some little time more.
At 14:17 GMT GBP/USD is down to 1.5940 from the open at 1.5952. EUR/GBP is up to 0.8080 from the open at 0.8043. GBP/JPY is down to 131.3505 from the open at 131.6550.
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