Sterling Euro forecast 2013 – What may happen next year?

GBP EUR Exchange Rate: Weekly Review July 16  

If this year we saw a school report for the Eurozone it would  almost certainly say “could do better”, in reality the situation in Europe is no  better than it was this time last year. The Spanish Banking system is in crisis  and its debt level is likely to increase to over 90% of GDP next year, Greece keep’s getting bailed out and has no clear plans to pay anything back and  certainly there will be more problems in other member nations such as Italy, Portugal and Ireland to name but 3 in the year to come.

I think of the major currencies the Euro could be in for the toughest time in  2013 with the core of the problem being that they simply have no clear strategy  for getting out of their ever increasing debt spiral. They keep trying similar  things time and time again expecting different results and I know I’m not the  first person to think that this might be the definition of insanity.

I saaw a documentary the other night surrounding Spain and even some of the Pharmacies over there are currently not receiving the money they need from the Government which will in no doubt lead to huge problems in early 2013 should this trend continue – I think things have been put to bed for this year but come January/February and the end of the Fiscal Cliff talks the Euro will be front page news once again.

Expect Sterling to break through the record highs seen this year on more than  one occasion in 2013.