GBP

Sterling lost ground yesterday as weak Retail Sales figures and a drop on investor risk appetite took hold of trading.

The pound hit two week lows against both the US dollar and euro, with the potential for further losses after the Federal Reserve meeting due to take place tomorrow.

Global risk appetite however does seems to be the key driver behind Sterling’s poor run, as stock markets and riskier currencies took a heavy hit in early week trading. Underlying concerns around the Russia-Ukraine tensions continue to worry currency markets. Last week’s talks between the USA and Russia didn’t seem to do anything to pacify global markets.

The pressure around UK Prime Minister Boris Johnson still doesn’t seem to be having much of a bearing on Sterling’s direction. Fresh reports released yesterday suggest Boris Johnson held a birthday party during a national lockdown last year. With Sue Grey’s report due for release at some point this week, his position looks precarious.

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