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Sterling remains under pressure this week

The market is looking to Thursday's BoE meeting as the next major market event for the pound. Market players expect Britain's central bank on Thursday to ease borrowing costs by at least 50 basis points to a historic low of 1.5 percent from the current 2.0 percent BOEWATCH. Overall the GDP/USD traded with a low of 1.4430 and a high of 1.4738 before closing the day at 1.4675 in the New York session.

The Euro's losses mounted yesterday, after it suffered a record one-day loss against the pound on Monday, on speculation the European Central Bank would be forced to cut rates deeper and perhaps sooner than expected as regional price pressures ease. The single currency's losses also took the Euro to three-week lows against the dollar, while it sank sharply versus the Yen. The European Central Bank meets next week to decide on interest rates, with markets largely pricing in a chance of rates being cut 50 basis points to 2 percent.

The Dollar hit a four-week high against the Yen and a three-week peak against the Euro as stock markets rose around the world boosted investors risk appetite. Analyst said equities were supported on reports over the weekend that Barack Obama, US president-elect, was likely to deliver a $300bn tax cut.

This helped the Dollar, which has seen its haven status eroded in recent weeks after the Federal Reserve cuts its main interest rate effectively to zero and announced that it was adopting in quantitative approach to monetary policy.