Sterling weak as Carney confirms policy on interest rates

Sterling had an uninspiring day yesterday, with no UK economic data of note that might affect the markets. However, Bank of England Governor Mark Carney’s statement that a dramatic increase in interest rates was not expected by the central bank put a dampener on investors’ hopes for such a result, hindering sterling’s performance and holding back its shorter to medium term prospects. This – coupled with stronger data from the US –  caused sterling’s drop to a three week low against the US dollar; sterling remained little changed overall against the euro. All is quiet on the key data front for the UK again today, with no major releases due; as such, sterling will have little to go on throughout the day. Call your trader now for the latest sterling rates, in a calm patch for the currency.