Reply To: Pound to go below Euro


I think the US is key to the UK recovery and should perform well over the short to middle term. I expect the Eurozone to remain moribund which I agree will be a damper on UK prospects.
It will also depend on which party wins the UK election in May. Labour will not reduce the huge deficit and only increase borrowing despite what they say.
I expect the Tories will reduce borrowing and the deficit.
That will eventually encourage the markets to invest in UK PLC and boost Sterling. Tax incentives later should increase public consumption.
2 years to partial recovery is possible. If Brown/Labour wins more like 4-5.
In the end it’s all really an educated guess. Uncertainty rules right now.