The Sterling dropped to a 3 week low in yesterday’s mid sessions, reaching a low level of 1.6233 further to a weak reading of UK’s Industrial Production for March which came out at 0.3%, well below the expected value of 0.9%. The negative impact news saw the GBPUSD drop by some 40+pips in the European session, and go on to decline to the three week low by the end of the session.
The Sterling’s recent drop is also attributed to a steep selloff in commodity prices, a move which pushed investors in dropping their long positions in higher risk currencies, as the seeked comfort in the low interest rate Dollar.
The Asian session so far sees the GBPUSD pair trading steadily around the 1.6280’s, with volatility limited to a little over a range of 10 pips. No major economic events are scheduled for the Sterling today, however the release of the US CPI at 12:30 GMT is certain to have an impact on the GBPUSD pair, especially should the actual value deviate from the expected value.