The pound dropped to $1.462 in early afternoon trading yesterday, its lowest level since prior to the 2010 General Election. Market attributed the fall to the release of figures by the British Chambers Of Commerce, contradicting previous reports by the CBI that UK GDP grew by 0.7 per cent in Q1 this year, and instead pointed to flagging sales and exports fortunes.

Chris Williamson of Markit says the data “provided further evidence to support the case of interest rates to remain on hold, and will add to chatter that policy may even need to be loosened further.”

“More up-to-date survey data suggests the economy is showing signs of reviving again, which means that the next move in interest rates will be a rise, but that there’s little likelihood of rates being hiked this year,” said Mr Williamson.

The Office for National Statistics’ first official estimate of the UK’s Q1 growth will be published on the 28^th.