Sterling Woes Continue – 11th October 2016

Sterling Woes Continue – 11th October 2016

Sterling had another poor day yesterday, falling once again, this time by 0.3% on average with the damage being done, once again, but negative sentiment around Sterling rather than poor economic data. Sterling did manage though to avoid a hat-trick of wooden spoons as the New Zealand Dollar took that honour.

The drop in the NZ Dollar was down to the Reserve Bank of New Zealand assistant governor John McDermott who dropped a bomb towards the end of a speech yesterday when he said “our current projections and assumptions indicate that further policy easing will be required…”. The NZ Dollar immediately dropped a cent. The Japanese Yen also had a worse day than Sterling as the Bank of Japan Governor Kuroda San talked up the bank’s readiness to increase and extend their quantitative easing programme.

At the top of the leader board was the Canadian Dollar, rising by 1.2% against Sterling. The US Dollar also benefited as investors concluded that Hilary Clinton had beaten Donald Trump in Sunday night’s candidates’ debate.

Tuesday has began with Sterling once again on the back foot with the uncertainty surrounding Brexit doing the job again.

There is little data again today leaving investors to continue to wage war on Sterling and with no UK data appear on the list, their will be nothing to distract them.