Sterling fell further on Friday but has pared its losses against the aussie this morning

There was no reprieve for the pound on Friday as it slid for the fifth consecutive day against the aussie, losing another cent to close down at 1.8744.

• Sterling came under broad selling pressure following news that Lloyds did not have the capital to break from the government’s asset purchase scheme, which underlined the financial instability in the UK economy.
  
• The U.K. currency also weakened after British Bankers’ Association data showed the cost of three-month loans in sterling between banks fell for a 13th day.
  
• However, some analysts have said that the Australian dollar may face headwinds in extending its gains as the Australian economy is recovering to pre-financial crisis level at a quicker rate than the broader global economy.
  
• In trading this morning the pound has slowed its rate of decline, as falling Asian equities weakened demand for the aussie.
  
• Both the Nikkei and Shanghai composite closed down slowing the Australian dollar’s advances, with the pair currently trading steadily around Friday’s closing price.