The British Pound suffered a further dip against the euro on Friday and this trend has continued this morning as interest rate differentials continue to drive the market.
Friday’s session saw sterling fail to capitalise on a strong rise in producer prices, which might otherwise have pointed to a BoE rate rise. Sterling has this morning dipped below the psychological 1.13 mark to a five and a half month low amid some noticeable sterling-selling.
Today’s session is quiet one in terms of economic announcements, though we do have a speech from a leading hawkish ECB policymaker, who may provide the euro with further momentum.
Looking to tomorrow, sterling may find some support on BoE interest rate speculation ahead of UK inflation data, however the pound’s near term upside looks limited.
GBPEUR is 0.179% lower with 1 GBP = 1.1306 EUR at 10 AM in London. GBPUSD is 0.006% lower with 1 GBP = 1.6348 USD.