The Pound Is The New Leeds United
After posting it's largest weekly gain in eight years last week, sterling reverted to type Monday, plunging the best part of 4 cents on declining interest rate expectations and a 16 year low in manufacturing activity.
The increasing expectations that the BoE will cut their benchmark rate by 100 bps at their December 4th policy meeting started the Pound’s weakness before the weaker manufacturing data accelerated its decline. Inflation is expected to fall below the Central Bank’s 2% target and mounting deflation concerns has fueled the MPC’s aggressive easing policy. Meanwhile, mortgage approvals fell to its lowest level on record at 32,000 as the housing market continues to weaken dragging the economy into a severe recession.
At 1pm GMT the pound was $1.4983, having closed at $1.5340 Friday.
Of course things could be worse, you could be a Leeds supporter.
The increasing expectations that the BoE will cut their benchmark rate by 100 bps at their December 4th policy meeting started the Pound’s weakness before the weaker manufacturing data accelerated its decline. Inflation is expected to fall below the Central Bank’s 2% target and mounting deflation concerns has fueled the MPC’s aggressive easing policy. Meanwhile, mortgage approvals fell to its lowest level on record at 32,000 as the housing market continues to weaken dragging the economy into a severe recession.
At 1pm GMT the pound was $1.4983, having closed at $1.5340 Friday.
Of course things could be worse, you could be a Leeds supporter.
