Double blow for UK plc

The UK economy – and therefore sterling – has suffered a double blow today, as the CBI lowered its growth forecasts for the year to just 1.8%, and the trade gap widened to a new record high of £9.2bn in December.

With the Bank of England unlikely to move interest rates tomorrow, based on the fragility of the recovery, there does not seem to be any good news for the Pound, which has dropped 0.6c against the Euro during the course of today.