UK Pound Takes the Upper Hand
UK pound is higher today, gaining as things take a turn toward the positive. The news that stimulus is unlikely to come in the eurozone is helping the pound against the euro, and disappointing news in the United States is helping the pound against the US dollar.
Sterling is higher against the euro today, thanks to remarks from Mario Draghi to the effect that inflation remains a problem in the eurozone. It seems unlikely that the ECB will engage in stimulus, and the United Kingdom appears to be making a recovery — even though it’s a very slow one.
UK pound is also higher against the US dollar as the latest payrolls data comes in from March. With only 120,000 new jobs created in March, many are disappointed and were hoping for more. The result has been a weakening US dollar as traders try to figure out what happens next, and as analysts try to assess the strength of the recovery.
Good news in Britain is also helping, with PMI exceeding forecasts, and retail sales gaining. The result is that there is some hope that the British economy might be back on track. It is little surprise that the pound is higher against the euro.
At 15:57 GMT GBP/USD is higher at 1.5877, up from the open at 1.5828. EUR/GBP is lower at 0.8243, down from the open at 0.8254.
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