Currency Note Sterling

Sterling slides as we await Thursdays BoE meeting

By Smart Currency July 31st, 2013

It was a torrid day for sterling yesterday as it lost ground for the sixth day straight against the euro and experienced its greatest depreciation in two weeks against the US dollar. Traders seem to be betting against sterling ahead of tomorrow’s Monetary Policy Committee’s (MPC) meeting. Expectations are that the Bank of England will be relatively proactive in their policy decisions when compared to their counterparts in the US and the Eurozone. Whilst it seems unlikely that we will see an increase in quantitative easing at this stage (all 9 members voted against an increase last month) and the MPC has already expressed a commitment to keep interest rates low for the foreseeable future, investors will be paying close attention to the forward guidance issued as they look for hints as to what policy adjustments we can expect as we approach the autumn. The release will be key in determining sterling’s performance in the near future with a number of key figures predicting further sterling weakness. There is little in the way of important economic releases emanating from the UK today, however you can expect sterling to remain under pressure in the run up to Thursdays announcement. Call in now to track on-going market volatility ahead of Thursday’s events.