U.K. Pound Heads Lower in Currency Trading

The U.K. pound is heading lower in currency trading on the FX market, thanks to the release of the latest minutes from the last MPC meeting. 

Minutes show that there are concerns about unemployment and other issues related to a slowly recovering U.K. economy. As a result, it doesn’t appear as though the Bank of England is likely to raise interest rates anytime soon.

The news sent the sterling lower in currency trading today. Even with stocks recovering around the world, and commodities on the rise, sterling is dropping against the U.S. dollar, unlike the euro, which is gaining against the dollar. 

EUR/USD Gains in Currency Trading

The euro tanked last week in forex trading, but most of those losses are being overcome this week. EUR/USD is gaining in currency trading on the FX market right. A great deal of that improvement is due to efforts by the European Union to help countries with sovereign debt issues.

Announcements of plans to keep euro zone countries suffering from sovereign debt problems have been made, and that is helping forex traders breathe a sigh of relief. Additionally, the fact that U.S. jobless claims are on the rise again is helping the euro in forex trading. Also not helping the U.S. dollar: A warning by Moody’s of a possible credit rating cut.

For now, it appears that a euro recovery is on the way. However, another sovereign debt crisis in Europe could once again send EUR/USD plunging. Sterling and Aussie are also gaining against the U.S.

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U.S. Dollar Mixed in Currency Trading

The U.S. dollar is mixed today in currency trading on the FX market. The greenback is down in forex trading against the pound, Aussie and yen, but higher against the euro.

Indeed, the dollar is slipping on the fundamentals today. The greenback did slide a little against the euro earlier, just after German GDP data showed growth, but sovereign debt fears in Europe have put the dollar back on top against the euro in forex trading.

Against other currencies, though, the fundamentals remain in doubt. Economic growth in the U.S. continues to be rather sluggish, and there is concern that a double dip recession may be on its away. Additionally, while sovereign debt hasn’t been a real problem so far in the U.S., some are starting to get nervous about the growing federal deficit, and that is not very good for the U.S.

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