Sterling suffered another poor day on Wednesday, extending losses against both the euro and US dollar to sit at the lowest level for three weeks against the euro and the lowest levels in a month against the US dollar. Sterling saw weakness throughout the morning, with investors cautious over backing sterling ahead of a budget which was widely expected to show a tightening of fiscal policy in the UK. Following recent poor economic data from the UK, nothing contained within the budget served to assuage investor worry, and sterling continued to fall throughout the afternoon.
Today sees confirmation of the Bank of England (BoE)’s latest decision on interest rates. They are expected to leave rates unchanged, and so attention will shift to the US where we will have the release of unemployment claims, and Europe where the ongoing Eurogroup meetings will provide insight into the Greek debt crisis.