I hate to sound so negative, but I received this from my foreign currency trader last night & it looks like the £ is going to drop yet again.
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Today saw the release of the Bank of England Quarterly Inflation Report which unfortunately forecasts inflation in the UK is due to rise sharply in the coming months. This has proved very damaging to the Pound which has lost ground against all major currencies, and follows the worrying news from Fitch that the UK’s AAA credit rating was the one most at risk of all leading economies. The news has knocked Sterling off a 3 month high against the Dollar on Monday morning and nearly 2 cents from the highest point against the Euro in the last month. Even more worrying was Mervyn King’s assessment that the UK economy wouldn’t reach pre-recession levels again until late 2011 which took the markets by surprise and is likely to keep pressure on Sterling- good news if you are bringing money back into the UK but will also mean those of you holding out for better levels to send money overseas in the next few months are unlikely to get much in the way of stocking fillers!
Friday sees some important GDP data for Germany which will have an important influence on anyone with interests in the Euro, and next Wednesday sees the release of the Bank of England Minutes from their meeting earlier this month which again could be key to the short term future of Sterling.
Topic: ONLINE CURRENCY EXCHANGE (Read 15888 times)