UK pound is struggling with the release of the latest data, but it is still maintaining the upper hand against the US dollar, which is falling as concerns about continued easing weigh on the greenback. The UK economy continues to struggle, and Mervyn King is calling for more stimulus from the Bank of England.
Bank of England Governor Mervyn King has indicated that more stimulus might be on the way. The belief that more stimulus has been bolstered by the latest data out of the United Kingdom showing that retail sales dropped. The news immediately send the pound lower against the euro, and it weakened the British currency against the US dollar.
While the pound is still down against the euro, it has regained the upper hand against the US dollar. News out of the United States, indicating that the Federal Reserve may add its own stimulus through more quantitative easing means that the greenback is weak as well. The pound is likely to continue to struggle, though, as the desire for stimulus from the Bank of England wars with PM David Cameron‘s austerity wishes.
At 15:12 GMT EUR/GBP is up to 0.8062 from the open at 0.8041. GBP/USD is up to 1.5870 from the open at 1.5841. GBP/JPY is up to 128.5650 from the open at 127.0950.
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