Sterling, economic growth and interest rates

One immediate effect of the 0.8% rise in UK economic growth during the third quarter, which was announced yesterday, was an upward valuation in sterling. The pound rose by about 1.5 cents against the dollar and stands at $1.5814 this morning, according to Reuters. The pound has now risen by almost 2 cents this week. The story is the same … Continue reading

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Hung parliament? Don’t tempt me.

Why did sterling fall to a 10-month low against the dollar yesterday? The answer is that it was mainly driven by political concerns. With the latest opinion polls showing that Labour is closing in on the Conservatives, the prospect is that we will have a ‘hung parliament’ this summer, which means that no single party will have an overall majority. … Continue reading

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Pound on course to reach parity with the chocolate button

The pound reached a six-week low against the dollar yesterday under increasingly volatile conditions in the financial markets. In fact, the pound fell by nearly 3% to reach $1.38. This is only just above the 24 year low of $1.35 which was reached in the middle of January. Some commentators believe that sterling will fall even further than this. The … Continue reading

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