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Posted July 9th, 2013 by Charles Purdy

Is sterling set for further weakness? | Smart Daily Currency Note

GBP/EUR – 1.1622

After being pushed against the ropes overnight on Sunday – dropping to the lowest it has been since early March – sterling gained a little ground back against the dollar yesterday, pushing back above 1.49 again. The International Monetary Fund releases its World Economic Outlook today, with analysts saying it is likely that the UK will undo its recent downgrade and be forecast 1% growth in the next year. Key to that success will be the manufacturing sector, from which production figures are released this morning, with the expectation being that we will see growth return after a disappointing month. As long as the underlying data shows that recovery in the UK is gathering pace we can expect the pound to at least hold its own – if it goes the other way there is certainly room for even further weakness. Call in today for more news and up to the second rates for sterling.

Yesterday, the President of the European Central Bank President reiterated last week’s comments that interest rates would be kept at least as low as they are for the foreseeable as the economic climate does not warrant a rise. Markets appeared to have become accustomed to the disparity between the noises coming from Britain and Europe, and those coming from the States, as there was no reaction to his words, instead we saw euro recover slightly. Talks get underway today between finance ministers where the focus will again be the next tranche of aid for Greece – while progress has been made in Portugal by proposing a Deputy Prime Minister, both regions still represent a threat to both Europe and the euro. Call now for an update on rates and news.

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