British Pound Sterling

As the below figures show, the pound sterling (Currency:GBP) isn't exactly lighting a flame under the world of currencies.

The pound euro exchange rate has managed to edge up by 0.03 pct to 1.2349. (The latest pound euro exchange rate forecasts are published on our IMT site - visit Free via this Facebook entry path, this allows us to update you on new forecast posts). 

The pound dollar exchange rate is lower by a mere 0.02 pct at 15502.

First off, we have technical issues to consider, particularly with regards to the pound vs euro.

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The euro has been exposed to extreme short-positioning as of late thanks to everyone looking to sell the currency.

Thus, when people start to get nervous about such a situation we see these short-positions close, and the euro thus gets bid higher in what is described as a technical squeeze.

On the fundamental front the sterling continues to scratch about for support.

Today it was revealed that mortgage lending slumped in April, after the end of the stamp duty concession for first-time buyers, lenders have said.

The decreasing flow of money into the housing sector shows a continued lack of confidence in the financial pipeline in the UK economy.

No doubt this can be extrapolated to other key sectors, and therefore investors will continue to factor in a further cash injection at the Bank of England.

Any signs that this were to happen will spur on pound sterling selling.

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