Pound Takes Another Hammering
I've written here before recently that the pound appears to be competing head-to-head with the dollar as to which of the majors is the weakest currency.
At the moment sterling appears to be winning that particular race in the style of a thoroughbred.
UK industrial production data out today came in devastatingly weak, and much lower than forecast, forcing some heavy selling of the pound across the board.
UK industrial outputs unexpectedly plunged 2.5% in August after rising 0.5% in the previous month, with the annual rate of production tumbling 11.3% from the previous year, while manufacturing slipped 1.9% from July to mark the lowest level of outputs since 1992.
The data appears to underline the fact that the Bank of England’s unprecedented steps to shore up the ailing economy will need to continue for some time. Indeed, the chances of having to extend QE measures as soon as November suddenly look a lot more likely.
Meanwhile, investors continue to speculate that the European Central Bank will tighten it’s fiscal policy next year. ECB council member Erkki Liikanen said that central bank will withdraw its emergency programs “when the economic situation allows.”
Parity here we come.
At the moment sterling appears to be winning that particular race in the style of a thoroughbred.
UK industrial production data out today came in devastatingly weak, and much lower than forecast, forcing some heavy selling of the pound across the board.
UK industrial outputs unexpectedly plunged 2.5% in August after rising 0.5% in the previous month, with the annual rate of production tumbling 11.3% from the previous year, while manufacturing slipped 1.9% from July to mark the lowest level of outputs since 1992.
The data appears to underline the fact that the Bank of England’s unprecedented steps to shore up the ailing economy will need to continue for some time. Indeed, the chances of having to extend QE measures as soon as November suddenly look a lot more likely.
Meanwhile, investors continue to speculate that the European Central Bank will tighten it’s fiscal policy next year. ECB council member Erkki Liikanen said that central bank will withdraw its emergency programs “when the economic situation allows.”
Parity here we come.
