Sterling Drops Against Main Competitors

The UK economy seems to be sailing along with not too many challenges. However, what has to happen next is quite a difficult cocktail for the government to manage. With that said, the Sterling tried to gain some strength over the last couple of weeks, but lately it has been very tough for the British currency to outperform its peers.

The Sterling is down this week against its main counterparts - the US dollar and the Yen. GBP/JPY reached a high of 138.82 yesterday and is now trading around 137.58, a sharp drop in less than a day. GBP/USD traded at 1.2512 and is now gravitating towards 1.2408.

Scheduled for later today we have the UK Autumn Budget Statement that can cause volatility in the market as well as Friday's GDP numbers.

Chart: GBP/JPY D1