Sterling slid closer to €1.1000 in trading yesterday and has continued to slide this morning

Bearish sentiment toward the pound accelerated yesterday following a BoE report on sterling weakness in the wake of UK debt and banking concerns.

• The pound continued to fall to a five month low amid a warning from the Bank of England that foreign investors may not be as willing to purchase UK assets, due to an increased focus on the UK’s economic imbalances, thus hurting the pound's long-term exchange rate.
  
• There was positive data on the UK economy from a Rightmove survey that revealed a rise in UK house prices, but market reaction was muted, as the data failed to outweigh negative sentiment.
  
• However, the pound did not lose too much value, with a lack of major economic data keeping trade activity relatively subdued.
  
• There was also significant selling pressure on the euro following a general easing in risk appetite, which prevented it from making significant gains.
  
• Trading between the pair remains steady this morning around 1.1050, as investors continue to hold back from taking significant positions ahead of tomorrow’s MPC minutes.