Summary
STERLING hit an eightweek low against the dollar yesterday, as an increasingly benign UK interest rate outlook was underlined by yet more soft house price figures. The pound was last night down nearly one cent on its close in London on Friday at Dollars1.8602, having hit an intra-day low of Dollars1.8587.
Neil Parker, financial markets economist at Royal Bank of Scotland, said: "I think there is further weakness ahead, simply because I do think the majority of the UK data at least is pretty negative on sterling. One of the major reasons people were holding sterling in the first place is the interest rate differential. That is going to continue to close." The number of City economists predicting UK base rates have peaked already at 4.75per cent has increased dramatically in recent months. Hawkish noises from the US Federal Reserve have raised worries that the benchmark Fed funds rate may eventually be raised faster than the "measured" pace so far signalled. The Fed has raised benchmark US rates to 2.25per cent with five, quarterpoint rate rises last year.See the full content of this document
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Sterling Slides Against Greenback
Property web...
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