Sterling is currently being sold off accross the Forex market as falling risk appetite dragges the risk sensitive currency lower. What is evident is the broad risk aversion in the markets at present is causing the Pound to be heavily sold against all 16 of its counterparts.
Sterling has fallen 0.7 percent to $1.6112, retreating from Wednesday’s high of $1.6275, its highest level since Feb. 3rd. The Euro has strengthened to 85.32 pence, its highest level in three weeks against the pound. The pound was further hurt by a …

Libya is the latest country facing political upheaval as it nears Civil War. Just a week after Egypt’s President Hosni Mubarak ended his 30-year run by resigning amid public unrest, Libya’s leader Moammar Gadhafi is dealing with similar anti-government demonstrations.
Gadhafi spoke out on Tuesday asking those that support the Libyan government to go on the offensive against the demonstrators, now supported by several army units that have defected from the government.
Protestors have reportedly ceased control of much of eastern Libya, which is a rich oil-producing region of the country.
The political …

This mornings MPC minutes reveal that Spencer Dale joins Andrew Sentance and Martin Weale voting to increase interest rates this month. The current rate is at a record low of 0.5 percent, Dale voted for a 25 basis-point increase. Interest rates have been a major focus in the market so far this year after inflation January data showed higher levels and last week it hit 4%. This is a clear indication that tightening may happen sooner. The market immediately reacted and we saw GBPUSD rocket from the 1.6220s up over …

Sterling slipped against the dollar on Tuesday, as worries stemming from growing tension in North Africa and the Middle East prompted investors pare back positions in riskier assets. Factors influencing the pound on the day were largely external, but domestic event risk loomed with policy minutes from the February Bank of England meeting on monetary policy due for release on Wednesday. What we have seen is a flock to the safe heaven currencies such as the JPY (Japanese Yen) and CHF (Swiss Franc) which have both seen strength throughout the …

In January UK inflation came in at an unexpected high of 3.7% and this week more alarming at 4% which is way off the Bank of England’s 2% target. This prompted the formality of a letter of explanation from Mervin King, governor of BoE, to George Osborne, chancellor of the exchequer. The news of higher inflation in January caused much excitement in the markets and the prospect of higher interest rates sent sterling rallying for the rest of the month; up over 300 points against the dollar hitting a …

The Pound has dipped lower against the Euro and the U.S Dollar this morning, while the UK currency also slipped against the majority of the 16 most actively traded currencies, after the Bank of England’s quarterly inflation report. Policy makers expressed a degree of uncertainty that UK inflation would return to the government’s 2% target over the next two years, citing higher commodity prices and a significant increase in consumer prices.