By Stephen Hughes

Is sterling losing the struggle for supremacy??  Surely not!

This morning sterling was at near record lows against a basket of major currencies, with continuing concerns over the banking sector and the British economy weighing heavily on the UK currency.  But just as you thought it couldn’t get any worse…it is revealed that the goods trades balance (difference between imports and exports) is more negative than expected.

The day saw sterling tumble to record lows against the euro, while it also lost some ground against the US dollar.  Fortunately the dollar was also under pressure as a little more risk appetite seems to have entered the market, leading to USDEUR weakness.

The euro seems to be quietly strengthening as there has been no major news about the Eurozone for a while; as the old adage goes: no news is good news! It seems to be true for the single currency.