The Great Britain pound was somewhat vulnerable today, losing to the euro and falling versus the Japanese yen a bit. At the same time, the sterling managed to rally against the US dollar that has been in retreat during the Monday’s trading session.
With concerns about China’s growth and the continuing decline of crude oil prices that affects inflation negatively, traders started to question if the Bank of England will be able to raise interest rates as soon as many market participants were counting on. Additionally, the relatively positive resolution of the Greek crisis reduced need for the sterling as a refuge from problems of the rest of Europe.
As a result of all those factors, the pound was unable to beat the currencies that were strong today, like the euro and the yen. Yet the dollar was even weaker, allowing the UK currency to rally versus the US currency.
Now, traders should watch the UK GDP report due to release tomorrow as it can have a noticeable impact on the pound.
GBP/USD rallied from 1.5511 to 1.5563 as of 17:41 GMT today. Meanwhile, EUR/GBP climbed from 0.7077 to 0.7134, reaching the daily high of 0.7160 — the highest since July 13. GBP/JPY traded at about 191.66 following the earlier drop from 191.89 to 190.99.
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