Sterling deteriorated against the U.S Dollar during trading yesterday breaking key support level at 1.5550, trading down towards a low of 1.5375 on interbank. Sterling also deteriorated against a basket of major currency pairings following the news of a 0.1% downward revision to Q3 GDP growth in the UK.
The adjustment in itself was minimal, however at the same time it has increased concerns over the strength of the economic recovery and raised questions over whether the UK economy will be able to remain resilient in the face of fiscal tightening next year. Paul Fisher, a member of the Monetary Policy Committee (MPC) has been quoted to suggest that the UK could face a quarter of negative growth next year. In a statement yesterday evening Fisher also suggested that interest rates in the UK could reach a 'normalised position' of 5% in 2011.... read more
No comments:
Post a Comment