020 7898 0500Sterling drifted lower against the US dollar on Wednesday in the absence of any significant news regarding the British economy. With recent news from the UK pointing to a loss of momentum in economic growth, sterling has fallen sharply since the turn of the year, and threatens to drop to levels last seen in 2010. Conversely, sterling picked up against the euro on Wednesday as economic data from the Eurozone increased pressure on the European Central Bank (ECB) to act in an effort to counter deflation as the Eurozone economy shrank by 0.2% last month.
Today sees the culmination of the Bank of England (BoE)’s two-day January meeting, with the release of the latest decision on interest rates from the BoE, although there is little chance that this will change from the current 0.5% level.
