£/$ Following negative comments concerning stability of the UK banking sector, sterling fell from its day high to close lower against the US dollar.

• In early trading the pound rose steadily, continuing to garner support following comments that the rate of inflation is moving beyond the BoE's targets.
  
  
• Having risen to a one week high against the dollar in the early session, the pound slipped back sharply, losing 0.85% after a report from credit agency Standard & Poor's that highlighted the risks of UK banks.
  
  
• S&P later confirmed that the report was an expanded version of a report issued on Dec. 21 st, but it was enough to send jitters through UK markets, pushing the FTSE 100 closing down 1.4%.
  
  
• Trading this morning has seen the pound recoup some of its losses as investors remain cautious ahead of the advanced GDP numbers from the US economy, due for release at 13:00.