Currency exchange rates 'sensitive'

The currency exchange rate for sterling is in a particularly sensitive position.

Reports from Dow Jones have suggested that the market is waiting for the Bank of England's latest quarterly inflation report to be released on Wednesday (August 11th).

Daragh Maher, deputy head of global foreign exchange strategy at Credit Agricole, told the news source that the report is "the fundamental focus for sterling".

The currency exchange could be altered if the Bank explicitly kept the door open for further quantitative easing or if it downgraded the UK's growth forecasts.

Today (August 10th), the Office for National Statistics published data which revealed that the UK's trade deficit fell from �3.8 billion in May to �3.3 billion in June.

However, the currency was barely affected. At 11:00 BST the pound bought $1.57, while against the dollar the currency bought �1.19.

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Posted by Sarah Pitton