Forex News

The U.K. currency entered its second day of gains versus most of the main traded currencies after evidences of economic improvements started to appear in the country, increasing appetite for assets in the country, which have been lately affected by grim forecasts towards the kingdom’s economy.

The pound didn’t manage to pare last week’s losses versus most of the 16 main traded currencies this Monday, as not only the financial, but the political situation in the U.K. is rather negative, impacting the already not very attractive assets in the country.

The yen was one of the biggest winners in the beginning of this Thursday’s session in Asia, as risk aversion surging from Europe is attracting investors to the safety profile of the Japanese currency.

China brought risk aversion once again to high levels before the end of this week’s session after it announced new lending requirements for banks, making the pound to trade towards another week of losses versus lower yielding currencies.

The pound posted a weekly decline versus multiple important currencies of its trading partners as a strong sentiment of risk aversion towards assets in Europe made traders to opt for refuge currencies overseas, as the British economic outlook is far from positive.

The pound declined today versus multiple important currencies after U.K.’s central bankers stated that quantitative measures may be resumed in the country if the economic conditions fail to improve, adding to the negative sentiment in European markets today.

The pound dropped yesterday and today ending a winning streak of more than a week versus several currencies as the country’s budget deficit increased to an all time record high, showing that despite positive data, the British economy is still far from healthy.

An unexpectedly negative retail sales report published today in London forced the pound down versus several currencies as it indicates that economic struggle in the country is still a reality in the U.K., shunning investors from pound-priced assets.

The Japanese yen continued to grow against the other major currencies for a third day today even after the worse than expected GDP data was released in Japan, as the risk-aversion still remains popular in the markets.

After several days driven by risk appetite globally favoring high-yielding currencies and forcing commodities rates up, the rally was halted as China affirmed that the economic recovery is uneven, raising concerns among safeties and attracting them to the safety of the Japanese currency.