Weekly sterling update September 23, 2010
Back in July I submitted copy for a well known expat magazine. This copy was for their September issue. In this article I suggested that euro buyers should watch out because between August and October 2009 the pound lost nearly 10 cent on the back of less than positive sentiment expressed by the BoE and the Treasury. Although circumstances are slightly different now what with the sovereign debt, credit and unemployment issues being significnalty worse, I feel somewaht vindicated.
Strerling has seen a loss of around 4 cent over the past week. The UK has had her growth forecasts for 2011 reassesed downwards, mortgage lending is at a significant low, youth unemployment is high, and after a very wet end to the summer it is no wonder that the cracks have begun to show and the Lib-Con’s coalition honeymoon is coming to an abrupt end. It would be wrong to say it is likely that the pound will continue to loose value in the short term because the PIGS still have serious issues with their public spending, austerity and borrowing capabilities, but the mood of the markets has changed ever so slightly, and we are loosing the momentum that carried through 1.20 and the summer season.



