Rough Times ahead for Sterling. Will Vassallo’s wild prediction come true? (Daniel Johnson)

Sterling strength has come at a cost to the UK economy. UK factory orders released yesterday have shown a significant drop, the lowest in two years. This is confirmation exports are being hit by Sterling’s strength over the Euro.

Mark Carney has already indicated he is willing to take measures to weaken Sterling in order to boost exports and hopefully inflation. I have a feeling his preferred method will be jaw boning as opposed to anything more drastic. We have already seen GBP/EUR drop from 1.42 down to the low 1.36’s. Dare I say that one of our top traders Matthew Vassallo made a recent prediction we could hit 1.29 and he was mocked, by the time the election campaigns have kicked in I think it may now be a possibility.

We are about to enter one of the most volatile trading periods for the last 5yrs, suddenly 1.36 doesn’t seem do bad for the Euro buyer.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me at dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

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