Sterling slips to 2-wk low vs dollar, BoE cut eyed
Sterling fell to a two-week low versus the dollar and eased against the euro on Wednesday as investors positioned for a widely-expected Bank of England interest rate cut on Thursday.
Consumer confidence in Britain fell to its lowest point in nearly four years last month, according data from Nationwide, while the KPMG/Recruitment and Employment Federation report showed wages growing at their slowest pace in nearly two years.
To boost slowing growth and easing consumer confidence, the BoE is widely expected to follow up December's rate cut to 5.5 percent with another 25 basis point move on Thursday and further easing later in the year.
"Growth does seem to be slowing in the UK and even though there are price pressures, I think that they are going to be of secondary concern compared with the growth," said Paul Robinson, currency strategist at Barclays Capital.
He added that the unexpected slump in the U.S. Institute for Supply Management's non-manufacturing index on Tuesday was also adding to the pound's woes.
"Essentially if the U.S. really slows as much as it looks like it's slowing at the minute, then that's going to be bad news ... for the UK as well."
By 0812 GMT, sterling was down 0.25 percent at $1.9575. The euro gained a fifth of a percent to 74.71 pence.
No major UK data is due on Wednesday.
Sourced by Reuters.