ECB continues to focus on inflation worries

The minutes from the Bank of England revealed that the split to cut rates was 8-1 in favour of the 25 basis point reduction. Only one member voted for a 50 basis point cut. Sterling had a pretty weak day yesterday as it dropped half a cent against the euro to be very close to breaking through the 1.32 level, and against the greenback the pound fell a full cent from yesterdays opening price but it did recover most by close of business. It is now trading at $1.9455. It’s hard to see where any support will come from for the pound, as aggressive rate reductions in the US don’t seem to be giving sterling any help, and the ECB’s continued approach to focus on inflation worries rather than the bigger global picture don’t seem to be helping on the euro.