Sterling still remains weak

The market yesterday morning was dominated by the news that China was implementing a stimulus plan to help sustain growth in the fastest growing economy.

While the market was digesting the impact on world markets that the package may have, the UK was releasing lower than expected PPI numbers which leaves the way open for more rate cuts.

Sterling remained relatively weak for the rest of the day trading around an all time low against the Euro. Already today we have had negative data out of the UK with Retail sales coming lower than expectations and with trade balance figures also expected to make grim reading, Sterling is likely to come under pressure again today.

The US economic sentiment figure is due to be released around 3 UK time, which is also expected to show a low figure.