Sterling has fallen out of bed this morning hitting its head on the way down as it dropped out of its range against the euro, which had held for over a month, and also fell into the red against almost all of its major counterparts.
The pound hit a two month low against the euro as the latter rose against the US dollar to hit its highest level since June 8that $1.3147. The single currency found traction in the market after Ireland managed to secure €1.5billion of 2014 and 2017 bonds, while Greece sold €390million of 3 month T-bills. These auction results show a higher level of support for the eurozone despite the sovereign debt issues.
This afternoon sterling is looking like it may well stage a slight comeback as it currently trades up at €1.1835 from €1.1809 against the euro and $1.5545 up from the day’s low of $1.5505.
