25th March 2011
Good morning. Sterling slid to a 4.5 month low against the euro yesterday as weak retail sales data raised concerns about a fragile economy while Moody’s warned slower growth could make it harder to rein in the deficit. At 08:30am this morning rates stand as follows:
- GBP/EUR 1.1361
- GBP/USD 1.6095
- GBP/AUD 1.5723
- GBP/NZD 2.1397
- GBP/CAD 1.5688
- GBP/CHF 1.4692
- GBP/ZAR 11.041
- GBP/JPY 130.35
- GBP/HUF 302.31
- GBP/NOK 8.9447
- EUR/USD 1.4161
Sterling tumbles again vs Euro
Concerns that a weak economy could push back the timing of a Bank of England interest rate rise pushed sterling lower just as the euro gained steam, with investors shrugging off doubts about Portugal as they anticipated a euro zone rate hike next month.
“Recently all the focus has been on the prospect of interest rates rising, but now people are thinking rate hikes will not come as quickly as they had been anticipating,” said Richard Wiltshire, chief FX broker at ETX Capital.
With a raft of poor UK economic data in the last week, Sterling has fallen to the lowest in nearly 5 months vs the Euro.
UK Retail sales yesterday were much worse than expected, showing the lack of confidence consumers have in the economy at the moment.
The economic summit continues in the EU. There are also many economic measures from Germany today. As the largest economy in the EU, markets will be paying close attention to this. There are some important releases from the US today: GDP figures, Inflation figures and a speech from the FED.
Have a great weekend.
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