Sterling continued to struggle yesterday, falling against both the euro and the US dollar. Assertion came from the Governor of the Bank of England (BoE), Mark Carney, that interest rates would not be raised imminently. This was taken by markets to mean that the BoE did not see clear signs that the UK economy is robust enough at the present time to support higher interest rates. This saw sterling drop off against most of its major trade partners.
On the other hand, encouraging manufacturing production data showed that output had increased by 0.4% in the UK over the past month, a figure above the 0.3% forecast – this saw sterling recoup some of its previous losses.
There is no major data out of the UK today, with interest focused on the developments in Crimea regarding the potential referendum to join Russia.
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