Tuesday was another tough day for sterling which saw it concede further ground, across the board and including a resurgent euro, as inflation in the UK fell to its lowest levels since 1989. Despite the Bank of England (BoE) forecasting that inflation will fall below the 0% level this year, sterling has still been adversely affected by the drop in consumer prices driven by falling oil prices. Also sustained uncertainty over the result of the UK general election in May hasn’t helped sterling as further polls came out suggesting that the Labour party remain slightly ahead of the Conservatives. This has seen sterling fall to the lowest levels against the euro since late February.
Today we see no major news released from the UK, with attention focussed on the Eurozone, and the release of the German IFO business climate.