Technical Analysis: USD/CAD To Weaken To 0.9446

Pound Slumps to Nine-month Low Over Fears of a Hung Parliament
MAIL ONLINE: The pound slumped to a nine-month low against the dollar today as fears over a hung Parliament sparked a sterling sell-off.

The currency fell sharply to as low as 1.478 against the dollar, as well as dropping below 1.10 against the euro.

Pressure on the pound comes as the Conservative lead against Labour in the polls narrows - threatening an indecisive General Election result at the same time markets want firm action to sort out the UK's dire public finances.

Mark O'Sullivan, director of dealing at foreign exchange firm Currencies Direct, said: 'Until the political situation in the UK becomes clearer, sterling will remain very, very vulnerable.'

The sudden drop from 1.52 to below 1.48 is the pound's biggest one-day fall since January last year, according to Chris Turner, head of FX Strategy at ING Commercial Banking.

He warned: 'While UK policymakers may have quietly welcomed the pound's recent weakness, they will not appreciate the kind of fast markets that can see a "sell UK" mentality developing.'

Sterling has lost nearly 10 cents against the dollar in little more than a week - hitting holidaymakers in the pocket, increasing pressure on petrol pump prices and adding to import costs for businesses. Read on and comment >>> | Monday, March 01, 2010

Pound Slumps Ever Closer to Parity with the Dollar
THE GUARDIAN: Sterling falls to $1.36, its lowest level for 25 years / Government debt rises to 47.5% of national income

Sterling slumped to its lowest level against the dollar for nearly a quarter of a century today on persistent fears about the health of Britain's banks and worries that the cost of bailing them out could be a millstone round the economy's neck for many years to come.
The pound fell as low as $1.362 during a hectic trading day, pressured also by bad public finance figures and a speech by Bank of England governor Mervyn King on Tuesday night that indicated that further action would be needed to prevent the economy melting down. >>> Ashley Seager and Kathryn Hopkins | Wednesday, January 21, 2009

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Sterling Tumbles to Record Low against the Euro as UK Economic Woes Mount
THE TELEGRAPH: The pound fell to a new record low against the euro today after a stark warning that the pace of economic decline in Britain is accelerating as the country moves into a deep recession.

Sterling was the weakest it has been since the launch of the single currency in 1999, with one euro worth 87.79p compared with 71.91p just 12 months ago. The currency was under some pressure against the dollar too, hitting $1.4736 at its lowest point this morning.

For the first time in years, some currency analysts are beginning to speculate that the pound may be headed for parity - where one pound will buy you just one euro or one dollar. Others dismiss the view, expecting the euro to weaken next year as the downturn in Europe's economy worsens.

The pound is being hammered as investors quit the currency over fears that the UK will be one of the hardest hit by the global recession and - with Government debt mounting - is poorly equipped to cope. That message was reinforced this morning by the well-regarded National Institute of Economic and Social Research, which warned the UK is toppling into a deep recession in the fourth quarter and is likely to shrink by more than 1pc. >>> By Angela Monaghan | December 10, 2008

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Pound Falls to All-Time Euro Low
BBC: The pound has touched a fresh all-time low against the euro, hit by market expectations that the Bank of England will further cut UK interest rates.

With the Bank widely tipped to trim rates to 5% from 5.25% on Thursday, one pound was worth as little as 1.2500 euros in early Wednesday trading.

Sterling later strengthened slightly, with one pound worth 1.2552 euros.

Interest rate cuts generally encourage investors to switch to other currencies that have a higher rate of return. Pound Falls to All-Time Euro Low >>>

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