Sterling was trapped below the 1.62 level against the dollar during Wednesday and dipped to test one-month lows below 1.60 in US trading before a recovery. Sterling was weaker against the Euro, but recovered from lows near 0.8670.
The Halifax house price index recorded a 0.5% decline in prices for June for a 15.0% annual decline which suggested that the underlying pressures have eased, at least on a short-term basis.
The government announced revised plans for the banking sector, although there was a lack of detail and the impact was limited with global trends still important for direction. Sterling was still unsettled by underlying fears over the debt situation if the economy fails to improve.
The Bank of England policy decision will be watched closely on Thursday and any expansion of quantitative easing would tend to weaken Sterling, possibly sharply.
By: Darrell Jobman
Thanks for sharing. I love the chart ;)
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