The Great Britain pound reversed its yesterday’s upward trend against the US dollar and the Japanese yen today and stayed flat versus the euro after tumbling on the last trading session as analysts expect a report later this week to show that the UK economy is slowing.
Experts predict that data would show UK gross domestic product fell 0.1 percent in the fourth quarter after rising 0.6 percent in the third quarter of the last year. That would confirm that Britain is entering a recession and would add incentive for the Bank of England to expand its easing program.
The pound was rising against the dollar and the yen yesterday as risk appetite reduced need for safety, but the currency retreated today, erasing its gains versus the greenback. The sterling dropped sharply against the euro yesterday and remained almost unchanged today. Britain’s currency may yet rebound versus the shared currency of the European Union if Greece would fail to convince its creditors to write off part of its debt.
GBP/USD fell from 1.5558 to 1.5543 and GBP/JPY went lower from 119.87 to 119.65 as of 4:11 GMT today. EUR/GBP traded at about 0.8357 today after surging from 0.8270 to 0.8356 yesterday.
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