Sterling reversed a three-day decline against the kiwi, posting marginal gains following a rise in risk aversion, closing the day at 2.1682.
- It was a choppy session for sterling, which initially dropped to a low of 2.1476 in early trading, as a lack of major economic data gave support to the higher-yielding currency.
- However, having dipped, the pound rebounded strongly, regaining over two cents as global equities backed off to trade in the red.
- Weak European stocks were followed in by the US markets, easing risk appetite and allowing the UK currency to stabilize in the afternoon, consolidating its position above 2.1650.
- In the early hours of this morning, the pound relinquished its gains as the kiwi found support from strong employment data from its neighbour Australia, and as higher Asian equities reaffirmed demand for the New Zealand dollar.
- However, the pound has found broad support as the European markets open, with the price currently hovering just below 2.17.