UK Pound Holds Its Own Against US Dollar
UK pound is holding its own against the US dollar, helped by a return to risk appetite. Without the general risk appetite, the pound would likely be struggling much more, as the British policymakers look for a way to boost the UK economy.
Right now, things are a little slow going for the UK economy. Prime Minister David Cameron‘s latest plan has run into a regulatory roadblock, and there are concerns about banks in the United Kingdom. Indeed, the latest news is that UK banks may need 22 billion pounds more in capital.
The news isn’t very encouraging for the UK pound right now. However, sterling is seeing some succes against the US dollar today. Risk appetite is providing support for the pound against the greenback. With better economic news in the United States, and encouraging results from the latest Spanish bond auction, there is optimism, and that is helping the pound hold its own against the US dollar.
Pound is also higher against the Japanese yen. As the need for safe haven recedes, the UK pound is getting a little boost as Forex traders decide to look fort he higher yields that come with riskier assets.
At 13:52 GMT GBP/USD is up to 1.6195 from the open at 1.6192. EUR/GBP is up to 0.8058 from the open at 0.803. GBP/JPY is up to 127.3650 from the open at 127.0650.
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Earlier News About the Great Britain Pound:
- Pound Gains as BoE Keeps Policy Unchanged (2012-10-04)
- UK Fundamentals Unexpectedly Bad, Pound Loses Strength (2012-10-02)
- Pound Down vs. Euro on Manufacturing PMI, Stable vs. Dollar (2012-10-01)
- UK Pound Gains on European Safe Haven Status (2012-09-26)
- UK Pound Gains as Forex Traders Dial Back the Euphoria (2012-09-17)