Most of the majors were volatile within their established ranges but one currency stands out. The pound fell to levels not seen since mid-2002. Bank of England officials did nothing to dissuade the markets from selling the pound in their commentary this week with both King and Sentance quite welcoming of the export boost a cheap currency can give the rapidly cooling UK economy. Expectations for further deep rate cuts ahead from the bank of England grew this week with some forecasting a 1% bank rate by early 2009. We end the week at 1.4790 after trading as low as 1.4555 on Thursday.
2008 will end up being what Queen Elizabeth II once called 1992: annus horribilis. We opened near 2.00 only to test 1.45 this week.
