Sterling fell against the Euro for a second day to reach its lowest level in eight weeks. EURGBP hit a high of 0.8979 in the U.S. session advancing from the session low of 0.8926.
The Pound also declined against the Dollar touching a low of 1.5910, in the prior session, Cable’s lowest level since the end of January.
A spate of poor economic data from the U.K has weighed down the British currency.
A UK government report released today gave evidence that the country’s current-account gap narrowed less than economists estimated in the first quarter.
“There are still a lot of concerns over the U.K. economic outlook,” said Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce in London. “Although I’m not convinced at this point that they will do more quantitative easing, the rising risks as the data disappoints should keep QE concerns behind the sterling downside.”
The poor data will likely push the Bank of England to maintain interest rates unchanged, as hinted by BoE policy maker, Adam Posen when he mentioned today that the U.K. economy is at “little risk of inflation.” Three Bank of England policy makers already hinted that they are concerned about Britain’s growth outlook.
“The time at which we start to see rates move higher is moving further and further away,” said Shant Movsesian, a strategist in London at 4Cast Ltd., a researcher that counts central banks among its subscribers. “The pound is likely to stay a bit weaker. There’s no real rush to buy it right now.”