29th March 2008 Currency Update - The pound hits all time low against the euro

The pound slid to an all-time low versus the euro this morning as soft house price and consumer confidence data pointed to an economic slowdown. House prices fell for a fifth straight month in March, bringing the annual increase to its lowest in 12 years and showing a key driver of the economy is faltering. Consumer morale fell to its lowest level in more than 15 years in March as households grew more gloomy about the economic outlook than at any time since the downturn of the early 1990s. B of E policymaker Charles Bean told parliamentarians on Wednesday that the risks to sterling were on the downside given the size of Britain's current account deficit also undermining sentiment on the currency. UK current account data are due at 9:30am and are forecast to show a deficit of 18 billion pounds in the fourth quarter. Right now Interbank is at 1.2637 with Natwest offering 1.2607. source IFX