Sterling suffered again yesterday as this week’s run of poor economic data from the UK continued. Housing inflation data from Halifax showed a slight reduction in house prices throughout June and, caused some early sterling weakness against both the US dollar and the euro. Sterling continued to fall against the US dollar over night as the US Federal Reserve outlined plans to end its quantitative easing program in October.
Today’s main event will see the latest interest rate decision from the Bank of England (BoE). Whilst this is expected to be a non-event, and rates to remain unchanged, the BoE still looks set to be the first major central bank to raise interest rates again with growing speculation that rates will rise before the end of the year.