Sterling loses ground after a promising start to the week

Sterling fell slightly later in the week after a promising start, as investors looked past the Bank of Englands's decision to hold rates steady this month and focused on the high possibility of an easing in June. Grappling to balance rising inflation from soaring food and energy prices with a sharp economic slowdown stemming from the global credit crisis, the Bank  of England's monetary policy committee left borrowing costs at 5% on Thursday after a 25 basis point cut last month. But a welter of poor UK data from housing to retail sales has left analysts convinced a cut is on the cards next month, potentially eroding the pound's yield appeal. The bank's quarterly inflation report is due out next Wednesday, while further clues on the economic outlook will also come with consumer price index data for April. Right now Interbank is at 1.2631 

source: IFX