Sterling fell through psychological support at 1.5700 following the release of the Nationwide consumer confidence survey during the Asian session.  For the month of October, confidence dropped for a 5th consecutive month, marking a record low for the survey, consumers fretted about the state of the economy.  Low wage growth is being further offset by surging inflation and unemployment that has hit a 17-year high.

According to Nationwide, consumer sentiment dropped to a reading of 36 in the month – compared to September’s 45.  The current reading is the lowest mark since the report’s publication start back in 2004.

The survey results have increased the likelihood that central bankers will opt to push forth with plans for additional monetary stimulus rather than leave the economy as is.  Policymakers are contemplating another expansion of the asset purchase facility – possibly accompanied by a benchmark rate cut.

The sentiment has left no one taking long positions in the British pound, which has already fallen by 6.2% from a high of 1.6737 set before the summer.  Currently, pound sterling is trading at 1.5698 against the US dollar, and slightly lower since the New York close at 0.8557 against the euro.