Daily Archives: March 26, 2010
Sterling exchange rates are taking a pounding this morning with weakening against the Euro by 0.7%
News filtered out from Brussels last night that a €22 Billion bail out for Greece has been agreed. It seems this is helping the Euro bounce back from yesterday lows against the Pound and the USD. This is bringing some excellent selling euro opportunities today. However if you are looking to buy Euros the future does not look rosy and you may look to secure your funds before we get any closer to the general election. As there is the possibility that sterling may weaken even further over the coming weeks.
I believe that the Dollar could strengthen against the UK currency. The USD has gained ground against the pound recently, benefiting from the weakness of the euro. GDP figures are expected to be strong and I think this is likely to increase confidence in the US and therefore increase USD demand.
For information on Sterling, Dollar, Euro or any other currency please feel free to contact me at firstname.lastname@example.org quoting PSF
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Yesterday retail sales for the UK were released yesterday and were very positive. This enabled the pound to make good gains against a number of major currencies. However, any hopes of a good spike in exchange rate were dashed when the Euro zone announcement for a bailout in Greece was announced. Therefore, despite the strong retail figures the pound still lost ground against most major currencies. I believe that this is indicative of the fact that any longer term any sterling recovery will be sluggish. The main reasons for this are:
- The Bank of England may carry out further QE
- Interest rates are likely to remain low for an extended period in the UK
- Uncertainty surrounding a hung parliament and how the national debt problem may be dealt with
- The UK is expecting huge public spending cuts
- Continued poor economic performance – the UK is a service driven economy and reduced demand for our services is damaging the pound
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