The Economy News: The British pound is lower on Monday morning against its major trading partners.
At 9am London time the British pound is down by 0.086% against the USD, the GBPUSD rate stands at 1.6296.
Against the euro the British pound has lost more ground, the GBPEUR is down 0.313% at 1.0838.
All analysts are pointing to Friday's surprise GDP figures which showed that the UK economy shrank by 0.4% over the course of the last quarter.
With the decline in GDP comes fears that further quantitative easing and a prolonged era of low interest rates are to follow as further economic stimuli are applied to the economy.
Put simply investors see little value in holding sterling in such an environment.
"Despite the huge stimulus the UK economy is receiving, it is still in a recession. It is more difficult to turn the UK economy around than other countries," said Ian Stannard, currency strategist at BNP Paribas in London.
"Last week's data suggests that the BoE will maintain quantitative easing, and discussions about extending QE will resume."
Spread betting provider ODL Markets provide the following guidance on some of the more popular currency pairs:
GBPUSD Range: 1.6320 – 1.6252
Brief profit taking fails to inspire a GBP rally. The rise above 1.6320 finds fresh selling interest.
EURUSD Range: 1.4983 -1.5062
Euro trades with a bid tone throughout the Asian session, resistance still though 1.5075. Asian sovereign names reportedly buyers at the lows
AUDUSD Range: .9192 - .9276
Appetite remains strong to buy AUD on dips. Australian PPI slightly lower than expected but market fails to push AUD lower. Resistance .9300
USDJPY Range: 91.58 – 92.14
A brief test of stop losses in USD/JPY on the downside fails to test larger stops through 91.50. Short squeeze takes us up to 92.20 in thin markets.
