Sterling Wobbles Ahead Of BoE Announcement

It's same old, same old for the pound I'm afraid today. With the BOE set to possibly reduce interest rates by a full one percent according to most economists, sterling is looking vulnerable.

At 7.30am GMT the pound stood at $1.4708, down almost three quarters of a cent from a close at $1.4775 yesterday. At one point yesterday the British currency fell to $1.4666, it's lowest level since Nov 17th.

The ECB is also expected to lower interest rates today, but by a more cautious half point to 2.75%. That would leave a disparity between the UK and the Eurozone of three quarters of a percent, favouring a weaker pound viz-a-viz the euro. The euro rose to 86.15 pence against the pound in early trade, close to it's all time high of 86.60 set on 13th Nov.