Sterling starts year on a low

The pound has started the year on a low and looks likely to continue that way for now according to currency trader City Index.

Sterling began the year "underperforming", according to Neil Looker, City Index's chief foreign exchange dealer.

Mr Looker added that the pound's position "has not been helped by the announcement from Pimco, the world's biggest bond house, that they intend to start selling their holdings of gilts".

The currency trader added that the dollar is faring better than sterling after the last jobs report, which "was very positive and triggered a bullish US dollar".

Friday (January 8th) sees the release of the latest job report in the US, about which there is an "air of confidence" in the currency markets due to the strong nature of the former report.

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Posted by Sarah Pitton