Pound continues to tumble against the dollar

Sterling tumbled for a fifth consecutive day against the greenback yesterday losing a further 0.4% to close the day at $1.6349.

• Sterling briefly rebounded against the dollar yesterday following an afternoon recovery in global stock markets, but the pound was unable to hold its value.
  
• As stock prices continued to rise, the pound failed to post gains, which strengthened the argument that investors are now beginning to take long positions in the dollar.
  
• Elsewhere, a better-than-forecast consumer confidence rating released in the US yesterday did not prompt selling pressure on the greenback, with the pound losing further ground following the announcement.
  
• Data for both the Core Durable Goods Orders and New Home Sales in the US is released today at 13:30 and 15:00BST respectively. There are no major economic announcements in the UK.