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Bloomberg reports that the pound fell by 0.6 per cent to 87.78p per euro in London earlier today (April 6th 2011), as well as slipping slightly to $1.6283 from $1.6364 against the US dollar.
"The industrial production numbers took some of the wind out of sterling's sails," said Rabobank currency strategist Jane Foley. "We don't think the [Bank of England] will be raising rates until November. Sterling has been vulnerable against the euro."
Data from the Office for National Statistics revealed this morning that UK industrial output dropped by 1.2 per cent in February. Investors also have an eye on the Monetary Policy Committee's impending meeting on interest rates.
The British Chambers of Commerce described the report as "disappointing" and claimed it indicated the continuing fragility of the country's economic recovery.
Posted by Clive Arneil
