020 7898 0500Sterling slipped again yesterday, after inflation data from the country was released. With the consumer price inflation from the UK slowing in November against expectations, reaching the lowest level in four years, it meant there was less chance that we could see the central bank raise interest rates in the near term. The Governor of the Bank of England (BoE) Mark Carney backed this up in his speech yesterday as he suggested there was no need for a rise in interest rates as inflation was approaching the BoE’s target. As a result, sterling fell for the fifth consecutive day against the US dollar to hit a six week low against the currency. Speculation over events stateside also contributed to these movements, bringing about the longest losing streak for sterling since August. Today, the BoE’s rate setting meeting takes centre stage in the UK, alongside the unemployment rate and claimant count change from the country. No change is expected at the central bank meeting, but investors will pay close attention to the overall unemployment rate. If the rate falls below 7% this could counteract the negativity from yesterday as it would suggest that the timescales for interest rate increases in the UK could be brought forwards. Domestic news will no doubt cause some movement in the markets, however, investors will be paying attention to the central bank meeting in the US this evening. Get in touch with your trader now for the latest sterling rates, as the currency’s recent good fortune slows down.
