The pound endured another difficult day yesterday as the market anticipated looser monetary policy in the UK, after the Bank of England said it was ready to take unconventional easing measures to revive the ailing economy. Risk aversion also kept sterling under pressure as equity markets around the world were sluggish following the disappointment over the vague nature of the US bailout.
In early trading today the pound is regaining some value as the FTSE 100 is up. Investors are also wary about opening up new short positions ahead of the G7 meeting starting today and the long weekend in the US.
Investors will be particularly interested in the eurozone’s GDP figures released this morning. Germany announced their GDP early this morning, which came in worse than expected at -2.1% (expected -1.8%). There are no major announcements due in the UK today.
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