Sterling crashes!!!
Disclaimer: THIS MATERIAL IS NOT INVESTMENT RESEARCH AS DEFINED BY THE FINANCIAL SERVICES AUTHORITY
This morning the Bank of England Governor Mervyn King claimed policy makers were prepared to reduce interest rates as low as necessary to prevent a recession from fuelling deflationary pressures. The bank of England has already cut benchmark rates aggressively twice in the last month. The economic forecast suggests the UK economy will contract through 2009 and inflation will slow behind the government’s minimum 1% unless rates are cut further.
This afternoon Sterling has crashed against a basket of currencies. The pound has been sold aggressively against the US Dollar smashing through the Key 1.5000 level and trading down to 1.4895. Against the Euro a similar story, once again all-time lows. Sterling smashed cleanly through the 1.22 level and is currently in free fall so far having traded down to 1.1900.
It has been a horrific day for holiday makers, it is now even more important for travellers to shop around for the best exchange rate in the market and to try and get the most foreign currency for their pound.
Wednesday 12 November 2008, 05:06pm
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