020 7898 0500A higher than expected level of inflation throughout June could not prevent sterling losing ground against the majority of its trading partners on Tuesday. Inflation of 0.5% matches the January 2016 high seen earlier in the year, but the muted reaction seen in the markets suggests that the recent sterling rebound is starting to lose pace. Sterling came under further pressure as the International Monetary Fund (IMF) cut their 2016 UK growth forecast by 0.3% to 1.7%, citing the damage that the referendum has done to short-term growth prospects. The 2017 growth prospect was also cut by 0.9%, and combined this had a significant effect on sterling as the currency all but erased the gains it had made over the past week.
Investors will again be watching sterling markets closely today, with average earnings and unemployment figures set to be released later this morning with any underperformance against expectations likely to hurt sterling.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.
