KN: Pound extends losses against the dollar 'after weak morning'
The pound extended its losses against the dollar around midday (October 21st) following morning declines, forex traders will have witnessed.
Sterling dropped by 0.7 per cent to $1.5731 against the US currency earlier today and moved towards a five-month low of 78.8 in terms of a trade weighted basis, Reuters reports.
But the news provider revealed that the pound extended its losses versus the dollar - dropping by around 30 pips after the data announcement to $1.5780 - later in the day after an unexpected fall in UK retail sales.
However, the weak UK information was in contrast to stronger-than-expected activity statistics seen in Germany.
Moreover, there are other concerns on the market about whether the Bank of England will opt for further quantitative easing (QE).
This led a Lloyds analyst to note: "The scale of the proposed cuts underlines the likelihood of low UK yields for a long time and the probability of QE."
