Risk Aversion Weighs on the UK Pound
Risk aversion remains intact today, and that is weighing on the UK pound. Concerns about global economic growth are still plaguing the markets, and that means that the UK pound is struggling. Right now, the pound is down against the US dollar and the euro.
Since British and European markets were closed yesterday for Easter Monday, investors are just catching up with the sentiment that brought Asian and European markets markets lower. US economic data released at the end of last week, as well as remarks from Ben Bernanke indicating that the recovery from the credit crisis still had a ways to go, continue to weigh on risk appetite.
UK pound is lower as risk aversion remains largely intact. The FTSE 100 is lower today, and that tends to bring the pound lower as well. Even an improvement in the RICS Home Price Balance for March isn’t helping the sterling much in Forex trading. There are some attempts by bulls to boost the US stock market, but it remains to be seen what will happen today. For now, there’s just too much downward pressure on the UK pound.
At 13:12 GMT GBP/USD is down to 1.5868 from the open at 1.5893. GBP/JPY is lower at 128.5985, down from the open at 129.5450. EUR/GBP is higher at 0.8258, up from the open at 0.8248.
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