The pound lost some ground to the dollar yesterday morning, after weak UK manufacturing data and a 1.2 percent drop in British equities signalled a fall in risk appetite, keeping sterling under pressure. However, by the end of the day the pound was little changed against the dollar, after it recovered from earlier losses on the back of a weaker euro, which was sold off yesterday amid falling European share prices and GDP data showing a record contraction in the eurozone economy in the fourth quarter.
The Bank of England are due to announce their next interest rate decision tomorrow, although the announcement is not expected to have a significant impact on the pound, since the central bank is unlikely to cut rates further. British interest rates currently stand at a record low of 0.5%.
This morning the BRC Shop Price Index is due from the UK, while Mortgage Applications, Wholesale Inventories and the minutes from the Fed’s FOMC meeting are released in the US this afternoon.
No comments:
Post a Comment