At the time of writing this report Sterling had lost 0.63% against the Euro 0.56% against the Dollar and 0.70% against the Canadian Dollar.
These losses look like they only lost momentum due to trade thinning ahead of the christmas period.
"It really does paint an exceptionally gloomy picture about the speed with which the UK economy has lapsed into recession," said Matthew Sharratt, economist at Bank of America in London.
With the Bank Of England already easing their interest rates by 300 basis points since October and further rate cuts becoming more and more certain by the day this does suggest that we have further to go.
When an interst rate is cut it generally has a negative effect on the currency concerned and a hike a positive one, as investors look to move their funds over to a higher yielding currency. The currency markets also move on rumour as well as fact therefore one would expect further weakness for the Pound leading up to the rate decision at the start of January.
This is a brief summary of todays report. Click here to read the full report on our main website
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Daniel Wright
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