The pound has continued its run of bad form in early morning trading, dropping against most majors, as an interest hike in the U.K appears to be sailing even further away, this is not great news for those of you looking to purchase a property overseas or make an important business transaction.
A member of the BOE stated that they now expect inflation to drop to 1.5% in 2012. Adam Posen stated that the Governments austerity drive and a weak economy would lead to a decline in consumer spending.
This now suggests that we may be further away from a hike in interest rates in the U.K and for those of you that are not aware a hike in rates is generally seen as positive for the currency concerned as it makes it much more attractive to investors, so these comments alone have now led to further Sterling weakness.
We have athe GDP revision out tomorrow morning which is the next release of note so do keep your eyes peeled for that one, if you have a transfer to make or a genreal enquiry about a specific currency pairing then please do feel free to contact me directly by filling in the enquiry form on the right hand side of this page and I will be more than happy to help.