The British pound proceeds better than euro and dollar

Inviato il 1 December 2010 da Rod

In the last article we began to see the current situation of the British pound. In addition to those already considered, another argument in favor of the pound is the fact that inflation is still very high in the United Kingdom. After three consecutive months of stagnant inflation, the rate is once again on the rise, reaching 3.2 per cent share in the month of October.
This means that the chances that the Bank of England put up another round of quantitative easing is increasingly unlikely. With inflation at these levels just six weeks before the jump of 2.50 percent VAT, a rise in interest rates in the United Kingdom must be almost certain.
The moment this happens, the pound would begin to appear more attractive to investors around the world, which could help push the value even higher.
It’s not only the positive news coming from the UK that are supporting the pound, but also the fact that it is not an area that is suffering as the States and the euro zone. For some time the dollar has suffered losses in response to concerns that the U.S. could slip back into recession, while the euro is under pressure because of the fear related to your debt due to the Irish, Greek and Portuguese. Against these currencies, the British pound gained, as the British economy is seen as relatively healthy, sick or at least not as in Europe and the United States.
Here you make the forecast of exchange rates extremely challenging and difficult, as nobody is willing to say too much about predicting the trend against the euro and the pound against the dollar. Surely the next trading week will be very busy and to take control.