Currency news - Sterling still under pressure

Sterling still under pressure - 11-11-08

After testing record lows beyond 0.82 against the Euro, the UK currency found some support on Monday, but was still generally on the defensive and it also failed to hold above 1.58 against the dollar with a slide to lows below 1.56.

The latest BRC retail sales data was again weak with a 2.2% decline in like-for-like sales in the year to October which maintain fears over consumer spending levels.

The Bank of England inflation report will, therefore, be watched closely on Wednesday for further details on the bank’s assessment of economic conditions and a very severe downgrading of prospects would continue to undermine the UK currency. Comments on fiscal policy will also remain under close scrutiny with Sterling marginally higher in early Europe on Tuesday.

The visible trade deficit fell to GBP7.5bn for September from GBP8.0bn the previous month, but the impact will be limited as there were special factors supporting the account.

Tim Clayton
Investica Ltd
E-mail: tim.clayton@investica.co.uk
+44 (0) 1452 781001

Full list of daily currency analysis

This analysis report is intended for distribution to ACM Advanced Currency Markets SA private, corporate customers and members. Information contained in this report is based on data obtained from sources considered to be reliable, however, no guarantees be made by ACM Advanced Currency Markets SA as to the accuracy, timeliness and completeness of the data. The opinions and forecasts contained herein are subject to change without notice and ACM Advanced Currency Markets SA accepts no liability for any losses, damages and/or expenses incurred arising from or in any way connected with the utilisation of all or part of this report. This report is meant for information purposes and is not intended to be and should not be construed as an offer or solicitation to buy, sell foreign exchange or indeed any other financial instruments. This report, or any part of it may not be reproduced or distributed without the prior consent of ACM Advanced Currency Markets SA.