Daily Archives: August 24, 2010
The pound saw considerable gains against a host of currencies yesterday but this morning sterling exchange rates are trading over 0.5% down against most majors.
It seems the reason for the pounds losses is down to a member of the MPC Martin Weale stating that the central bank’s growth forecast for this year and next may be too optimistic and the UK economy could dip back into recession.
Whenever there are comments from within the Bank of England or think tanks that give their opinion on the economy the pound tends to suffer if the comments are negative. Is this the start of bad things to come. Some analysts have been stating that sterling will weaken significantly against a host of currencies and maybe most importantly by up to 8% against the Euro.
With a host of GDP data out this week for the US, Euro and UK sterling exchange rates could prove to be extremely volatile. As this data release is a measure of economic activity and will show weather the economy of each state has grown or subtracted.
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