Sterling rallies against major world currencies
The UK currency was today centre stage on the currency exchange markets after a sharp rebound across the board. While there are suggestions that the Barclays bank statement, indicating that maybe the banking sector is on the turn, has breathed new life into the UK currency many traders believe the news from the high street was far more telling.
If the news on the high street is confirmed over the coming weeks and months it would appear that the UK recession is set to get worse and while talk of a depression seems to have disappeared over the last few days it is something which may crop up again in the future. When you also consider that upwards of 50,000 UK jobs have been lost over the last few days there is real concern about the stability and growth potential of the UK economy.
Some investors expect sterling to pick up over the next few days, in what is commonly called a "suckers rally", having been oversold in recent times. While opinions are mixed as to which way the currency will go in the short to medium term those who believe the UK is "out of the woods" may yet be in for a serious shock.
Share this..
Related stories
Fee free bank accounts explained
12/01/2016 From the 1st January this year, the Treasury and the banking industry came to an agreement which means that nine UK high street banks will begin to offer fee-free current accounts. For the first time ever, bank accounts will be truly free to certain people, and they will be able to bank with the knowledge that they will not receive charges and not have an access to any overdrafts, a...
Read MoreAlistair Darling calls the end of the recession
Chancellor Of The Exchequer Alistair Darling will tomorrow call the end of UK recession confirming his belief that the economy will move into positive territory around the turn of the New Year. He will make his forecast in a Guardian article to be published ahead of the G20 meeting in which he will appreciate there are still risks to the worldwide economy, but he believes the UK will follow the li...
Read MoreKraft Foods disappoints with results
Last night saw US food giant Kraft Foods announce disappointing third-quarter results which many had hoped would be the springboard for a takeover of Cadbury. All eyes are on the US market this afternoon to see how investors react to the disappointing news because a reduction in the share price of Kraft Foods would directly affect the company's ability to afford the £10 billion plus acquisition o...
Read MoreBank of England joins the doom and gloom party
Spencer Dale, the chief economist at the Bank of England, today issued a statement regarding the UK economy which on the surface appeared to be fairly upbeat and optimistic. However, on further investigation it appears there are a number of issues which need to be resolved in the short to medium term before the UK economy can "stand on its own 2 feet". Even though Spencer Dale would appear hopeful...
Read MoreUK recovery will be patchy
The Centre for Cities, an association which monitors prominent cities around the UK, has today suggested that various UK cities are better prepared for the eventual economic upturn than others. The association has cited Brighton, Milton Keynes, Reading, Cambridge and Edinburgh as having "the right ingredients" to succeed when the economy turns although places such as Stoke, Burnley, Barnsley, Newp...
Read More