UK pound is a little higher today, gaining ground after yesterday’s drop following unexpectedly poor data. Even though sterling is seeing gains right now, the currency remains vulnerable. Long term weakness is likely.

The Great Britain pound dropped today, touching the lowest level since June 2010 against the US dollar, as both factory and industrial production declined in January.

The UK pound outlook continues to be a sore point. Outlook is weaker for the sterling, with continued economic troubles predicted, and more stimulus expected.

UK pound is getting a boost against its low-beta counterparts today, thanks to the latest decision from the Bank of England. A touch of risk appetite is also helping the pound against currencies like the dollar and the yen, but the euro continue to dominate the pound.

Sterling is attempting to regain some of its lost ground today. At the end of last week, the UK pound sustained significant losses as weak PMI data highlighted the continuing problems the United Kingdom is having with economic recovery. Today, the UK pound is making some inroads against the euro and the US dollar, but there is a chance that the recovery attempt won’t last too long.

European data released earlier is disappointing, and concerns about the situation are prompting gains for the US dollar. Even though the US economy is recovering at a sluggish pace, and even though the sequester has hit, the US dollar is still in a stronger position than its European counterparts.

The Great Britain pound dropped today after a report showed that the manufacturing sector unexpectedly contracted last month. The currency reached the lowest level since July 2010 against the US dollar.

US dollar is weakening today as optimism makes an appearance on the markets, and risk appetite improves. However, even though greenback is mostly down against other majors, it is holding ground against commodity currencies, which continue to drag on gold’s lackluster performance.

Euro has recovered some of its earlier losses against the US dollar, but the 17-nation currency remains vulnerable to the UK pound and the Japanese yen. Even though the latest fears about Italy have been assuaged slightly, there are still concerns about the eurozone’s economic vulnerability, as well as the health of countries in the periphery.

The Great Britain pound demonstrated mixed performance today as UK GDP matched analysts’ forecast, falling quarter-on-quarter, but growing on an annual basis.