Sterling Falls to One-Month Low Against U.S. Dollar

On Tuesday, the official data showed UK's inflation rose to 4.5% in April. Many analysts were hoping this will be a sign that the Bank of England will start raising its interest rates from record lows very soon. Their hopes were given a setback today, as the minutes from the last BoE meeting were released. The

showed that only three board members voted to increase the interest rates from the current level of 0.5%. This is the fourth month in a row that interest rates were left unchanged by six to three vote. With data pointing to inflation trouble ahead, many analysts were expecting the number of "raise the interest rate" board members will increase. The British currency plunged to 1.6114 against the U.S. dollar, its lowest point in a month and a fall of 0.85% on yesterday's close. The British currency was not helped even by good unemployment data. According to

, UK unemployment fell by 36,000 in the three months to the end of March to 2.46 million, the second quarterly drop in a row. The rate of unemployment in the UK was now 7.7%. Those traders who believe the UK interest rates will not be rising soon will be interested in shorting the pound. As a result, they will keep an eye at ETFS FOREIGN EXCHANGE LIMITED ETFS SHORT GBP LONG USD (SGBP).