Pound Sterling Finds Support at Rising Moving Average Amid Global Bond Market Nervousness

The pound sterling's recent decline from July's highs has continued, but it may have found its footing on the rising 100-day moving average.

Last week saw the pound-to-euro exchange rate break beneath the shelf that held it in August, but the decline stopped at the 100-day moving average. This average has been climbing steadily since June and acted as a barrier to further losses for sterling.

The pound's vulnerability to global bond market nervousness is a key factor behind its decline, particularly with UK debt levels high and domestic inflation running above the Bank of England's forecast.