Pound Sterling Forecast

With all the doom and gloom that is coming out of Europe and more specifically Greece it is amazing how the pound has weakened today by nearly three quarters of a percent. Sterling started the day trading up at 1.1671 but as the day progressed we are now below 1.16. This highlights to me how bad the state of affairs still are in the UK. If you have a requirement to buy any currency with the pound you should look at how the pound has traded against the Euro and make a decision on how well sterling will perform over the course of this month. If your feelings are negative then don’t take the risk and secure the currency that you require sooner rather than later. With all the uncertainty surrounding global financial markets no one can categorically state what will happen.

Key events coming up will be the meeting this evening between leaders of France, Germany & Greece. The markets must have a resolution otherwise more uncertainty looms around the corner. Plus investors are looking ahead to the Greek government’s confidence vote on Friday. If Papandreou loses the vote, a general election will be called and most likely there will be no referendum. If this is a good thing or not only god knows at the moment.

Another key event for tonight is the FED’S Bernanke speech after he decided to keep interest rates on hold at 0.25%. His speech again always has an effect on sterling exchange rates and it will be interesting to see if it brings about sterling strength or weakness.

If you would like to discuss any future currency exchanges please email me directly at bma@currencies.co.uk