| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
| 1.47 | 112.35 | 2.0795 | 1.1425 | |
| Resistance | 1.4625 | 111.15 | 2.073 | 1.1345 |
| 1.459 | 110.8 | 2.065 | 1.1335 | |
| 1.4465 | 109 | 2.053 | 1.122 | |
| Support | 1.4445 | 108.75 | 2.0455 | 1.119 |
| 1.4405 | 108.15 | 2.031 | 1.1155 |
Sterling fell versus the dollar and yen and hit its lowest in nearly three years against the euro on Monday as risk adverse investors pared back positions in relatively risky carry trades and sold the high-yielding pound.
Falling stock markets and general concern about the health of global financial institutions since the credit crunch have led investors to scale back carry trades where they borrow low-yielding currencies like the yen to fund purchases of higher yielding assets.
Whenever risk appetite is not good we get the carry trade unwinding which hits the pound and focuses investors on the fundamentals of the (UK) economy which are not good, like the housing market," said currency strategist from London.
Figures from the Department for Communities and Local Government showed British house prices rose at 10.8 percent year-on-year in September compared with a revised 11.3 percent increase in August.
The pound was down yesterday and traded at 2.0523$ a two-week low. The euro was and reached the price 0.7080 $ against the sterling the highest level since January 2005.
Versus the low-yielding yen, sterling fell as low as 224.17 yen, a three-month low.
Sterling dipped briefly when thick black smoke was seen rising from a building in East London but recovered slightly when it turned out to come from a fire at an empty warehouse and police ruled out a terrorist attack.
Increasing food and petrol prices pushed UK factory gate inflation to its highest level in 12 years in October, denting expectations of an imminent cut in interest rates.
The Office of National Statistics said output prices raised a non-seasonally adjusted 3.8 percent for the year its highest level since December 1995.
Today's Economic Events
| Date | Event | Country | Period | Previous | Forecast | Significance |
| 00:00 GMT | Interest Rate Announcement | JPY | Nov | 0.50% | 0.50% | 4 |
| 00:00 GMT | BOJ Governor Fukui Speaks | JPY | Nov | 4 | ||
| 07:00 GMT | GDP | EUR | Quarterly | 0.30% | 0.60% | 3 |
| 09:30 GMT | CPI m/m | GBP | Oct | 0.10% | 0.30% | 2 |
| 09:30 GMT | CPI y/y | GBP | Oct | 1.80% | 1.90% | 3 |
| 10:00 GMT | German ZEW Economic Sentiment | EUR | Nov | -18.1 | -19.5 | 2 |
| 10:00 GMT | Industrial Production m/m | EUR | Sep | 1.20% | -0.30% | 2 |
| 20:00 GMT | Pending Home Sales m/m | USD | Sep | -6.50% | -2.80% | 2 |
| 21:45 GMT | PPI Input m/m | NZD | Quarterly | 1.30% | 1.10% | 3 |
