Currency Note Sterling

Sterling weakens as inflation falls

By Ricky Bean December 12th, 2013

Sterling endured a tough time yesterday, falling from its recent highs after words from a key policy maker. Bank of England member Martin Weale stated that since the summer we had seen a “sharp and unexpected” decline in inflation. As a result, sterling dropped against both the US dollar and the euro – hitting a three week low against the latter – as lower inflation reduces the pressure on the Bank of England to increase interest rates in the near term. No major releases are planned for the UK today, as a result, further reaction to yesterday’s comments from Martin Weale as well as news released outside the UK will likely be the main drivers behind sterling’s movements today. Call your trader now for the latest sterling rates.