GBP Rates Fall Against the Euro

Sterling exchange rates followed yesterday’s gains with a disappointing day today losing ground against the Euro by nearly 1 cent even after UK PPI data came out better than expected, a result which would normally give the pound a boost. Sterling’s losses appear to be caused by investors backing Europe to raise interest rates at a faster pace than the UK, I also believe the Portuguese bailout leaving the UK potentially out of pocket to the tune of €3bn will have detrimental affects on the short term value of sterling.

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