Sterling was seen as a risky investment and continued to show weakness yesterday as it hit a 2 ½ month low of 1.1354 against the Euro and a six week low of 1.6160 against the dollar.

This was partially to do with the yield on 2 year UK government bonds which reached a record low and strong data in Germany which boosted business sentiment resulting in the Euro gaining against the pound.

It rallied more then 0.5 percent to 88.07 (1.1354) pence it’s highest since early June.

Sterling slid more then 1 percent on the day as the dollar rose after a fall in stocks and oil prices meant there was a surge in risk aversion.

The pound spent the day under broad selling pressure on wed hitting its weakest level against the Australian dollar since 1996 (1.9484)

Sterling also fell against the Yen hitting a 1 month low of 153.00.

Data released today includes UK house prices and in the US GDP data and jobless claims.

At 9.00am the Euro was at 1.1372 and the dollar 1.6199.

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