Currency Weekly Round-up

The pound fell versus the euro this week with investors, worried by a harsh combination of high inflation and slowing growth in Britain, wary about the currency. Sterling has been on the back foot this week after the B of E delivered a bearish prognosis on British economic prospects in its quarterly inflation report on Wednesday. The report showed that inflation is set to remain stubbornly high in the coming months, limiting the central bank's ability to act to bolster an ailing economy with rate cuts. Before the inflation report, the B of E was widely seen as cutting rates by 25 basis points to 4.75% in June, but a Reuters poll conducted after the report found a majority predicting it would hold off from reducing them until the third quarter. Right now Interbank is at 1.2572 with Natwest offering 1.1983.

source: IFX