Since the departure of Sir Mervyn King as Chancellor of the Bank of England and Mark Carney taking the reins the pound has profited by the new boy’s positive spin on the outlook of the UK economy with clear goals which will ensure that interest rates will rise if unemployment decreases, a sign of a recovery in the wider economy and a huge stride away from the credit crunch and subsequent recessions.
By Luke Trevail of TorFX
Sterling now looks to end the year as one of the better performing currencies with key levels in its sights across a number of the major trading pairs. Indeed, we are at three-and-a-half year highs against the Australian and Canadian dollar and importantly have moved to just above the key 1.20 price (0.8333) for GBP-EUR.
Those who are holding on to euros with a hope of any improvement may well have missed the boat for now, as further rumblings of the eurozone problem worsening have reared their head. On Friday, credit agency Standard & Poor stripped Holland of its enviable AAA rating and the single currency was shaken further as Youth Unemployment hit an all time high of 24.4%. Exchanging any euros you have back into GBP is sound advice as rates in the mid-€1.20’s are expected in early 2014.
Similarly those of you that have been waiting for trading prices of near to or above this tempting price can feast on Sterling’s strength, but perhaps be warned that all is not rosy and we’ve seen the pound dominate for a few days previously only fall off a cliff seemingly out of nowhere shortly afterwards.
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