Pound still in limbo

Yesterday morning the Pound started the day gaining some much needed ground of around half a cent to stop the rot, this came off the back of the ECB’s non-monetary policy statement but this was short lived as by the afternoon the pound was back to the low levels seen on Tuesday and continued it’s steady demise. There doesn’t seem to be light at the end of the tunnel for the Pound, with seemingly no positive data in the near future from the UK. This may continue to be a negative spiraling trend for Sterling, with the Dollar rallying on, the euro somewhat recovering from last year’s impact blows from the Greek economic meltdown and sentiment taking its toll it seeming that the Pound is being driven down a troublesome road.

Things could be going from good to even better for the US as yesterday market analysts said there is a 50% chance that interest rates could once again rise and if that’s the case would send Dollar sellers into euphoria with what would be record highs for the Greenback. The Dollar is currently experiencing unfamiliar highs against Sterling, 10 year highs in fact and if the experts are correct in their analysis then this will only be exacerbated and the Pound will continue it’s deterioration against the Buck.

Overnight the Unemployment Rate Was announced in Australia, the figure produced was 5.8% which was the same as previous. Key data releases from the UK today to take note of as The Bank of England monetary policy statement will be discussed. Information will be divulged on the ongoing interest rate decision. Last year The Bank of England governor Mark Carney revealed that there would be no interest rate hike in the foreseeable future and with that being said it seems unlikely that there will be a U turn in that decision with negative figures coming out from the UK and with a diminishing pound. Information from the meeting will be made public at 12.00pm. At 12.30 we will here from the ECB on their economic position. In the afternoon from across the pond Jobless claims data will be announced and finally Canada will release New Housing Price Index data.

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