UK Pound Mixed in Forex Trading

Earlier today, the UK pound was falling in Forex trading. A drop by the FTSE 100, as well as concerns about bank capitalization, were among the factors causing losses for the sterling. Now, though, things have turned around a bit — at least against some currencies. Concerns about the eurozone had been weighing on the sterling against the US dollar, but new prospects for stability in the euro region are helping the situation.

The Bank of England has moved a little closer to another round of quantitative easing, which would help boost the British economy. Additionally, Monetary Policy Committee members are considering that a little more flexibility might be needed in bank capital requirements. This would help ensure that needed liquidity remains in the economy, and provides some support.

Even though the UK pound was lower against most major currencies earlier, now sterling is higher against some of them, offering mixed results. At 13:41 GMT, GBP/USD is at 1.5641, a gain over the open of 1.5632, and an improvement over the session low of 1.5606. EUR/GBP is an exception, with the euro gaining at 0.8702, up from 0.8690, and GBP/CAD is at 1.5994, up from 1.5939.