Currencies Direct says it is seeing the pound trade at an all time low on the back of expectations that the Bank of England will cut interest rates further.
It also hasn’t been helped by the US Federal Reserve slashing interest rates to between zero and 0.25%, London foreign exchange trader
Mark O’Sullivan, director for dealing at Currencies Direct, says: “Following the US Fed’s decision to slash interest rates Currencies Direct is seeing a huge dollar sell off which is likely to continue throughout the day.
“The Fed’s move has also put pressure on the Bank of England to follow suit and cut interest rates again in the UK, possibly a full point cut to 1%.
“We are already this morning seeing the pound trade at an all-time low against the euro – 1.1022 – and this is likely to get worse as more investors lose confidence in the pound amid fears about the UK economy.”