Sterling spiral speeds up against major currencies

We have seen Sterling flounder to its lowest this week against a raft of major currencies - hitting an 8-year low against the US Dollar at $1.38 and holding €1.06 against the Euro - and it’s not set to get any better, according to foreign currency specialists FC Exchange.

Following the Pound's triumphant claw back up the currency ladder last week and the fact that it stabilised momentarily for the first time in a number of months, the currency was knocked again by a number of factors, including rising levels of unemployment, plummeting bank stocks and deflation edging ever closer.

Nick Fullerton, MD of FC Exchange comments: “Sterling is extremely weak at the moment and with ever increasing amount of negative data being released in the UK, this doesn’t give Sterling much of a leg to stand on.

“Parity is becoming topical again, even a triple parity, despite it being narrowly avoided in December. All eyes are now on the Bank of England to make its next move - another interest rate cut may allow the currency to stabilise again, but for how long we don’t know.”