UK pound is in the process of recovering some of last week’s losses right now. Thanks to profit taking and a little hope for the future, sterling is gaining some ground against the US dollar.
Like other major currencies, the pound is down against the euro today. However, sterling is gaining ground against the dollar and the yen as risk appetite makes an appearance. Profit taking after last week’s drop is also probably helping the UK pound a little bit.
Sterling dropped on comments from Bank of England Governor Mark Carney last week. Additionally, the pound has been struggling with the UK election coming up. Analysts say the election hasn’t been priced into the market, and could still cause some turmoil with the sterling.
Today, though, there is a little risk appetite to support high beta currencies. Chinese stimulus has been announced, and that’s positive for risk around the world. Also, European markets are higher today, with stocks across Europe gaining ground. Stocks on the FTSE 100 are gaining, and that is something that is helpful to the pound.
At 10:46 GMT GBP/USD is up to 1.4795 from the open at 1.4743. EUR/GBP is higher, gaining to 0.7125 from the open at 0.7103. GBP/JPY is up to 179.5620 from the open at 178.9050.
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