British Pound posted its biggest weekly decline in forex trading against the Euro since 2005 as speculation increases on a slowing economic expansion. Speculation has also increased that the Bank of England (BoE) will reduce its interest rates as early as December. The British Pound has fallen against 14 of the 16 most traded currencies in forex trading this week. ''Sterling is likely to remain under pressure against the euro this year,'' said Martin McMahon, a currency strategist at Credit Suisse Group in Zurich. ''The inflation report was on the dovish side, retail sales weren't great, so it's understandable we see markets pricing in rate cuts, even before Christmas.'' The latest industry/government reports showed evidence that the housing-market boom has fizzled and consumers are reducing spending as interest rates at a six-year high curb demand.
In forex trading against the Euro, the Britihs Pound fell to 71.52 pence by late yesterday in London, from 70.22 roughly a week ago. It declined to 71.67 yesterday, the weakest level since June 2003. The weekly decline of 1.9 percent was its biggest fall since July, 2005.
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