Sterling hits fresh lows against the dollar

Sterling dropped to its lowest since level since the middle of March, its sixth consecutive daily fall as investors are worried about the performance of the British economy.

April has historically proved to be supportive for the pound because of a seasonal rise in capital inflows into Britain from foreign companies paying UK shareholders dividends.

But last week, sterling fell almost 1.7 percent on weaker-than-expected data and cautious comments from Bank of England Governor Mark Carney that slashed market expectations for a May rate hike.

The key data this week is the gross domestic product figures, analysts will look for signs of how the economy was holding up and whether it the BoE are ready to hike rates.

A resurfacing of worries about Brexit also sapped at the pound, which has been one of the best performing major currencies in 2018.

Britain’s upper house of parliament handed the government its third defeat over Brexit in less than a week yesterday, voting down plans not to retain EU rights in national law before Britain leaves the bloc.

The market is now pricing in a less than 50 percent chance of a rate hike at a May 10 BoE meeting, down from more than 80 percent a fortnight ago.

Our Locations

Currencies 4 You operates in a number of locations, speak to your local representative for the best solutions for you.