When will sterling bottom out?
It seems like a million years ago since the UK currency was around the $2 to £1 level as sterling again came under pressure after comments from credit ratings agency Fitch. Even though the overall situation appears to have improved over the last 24 hours the comments from Fitch have put UK investors and UK analysts on alert. It appears highly unlikely we will see the UK sovereign credit rating reduced but the fact it is the weakest of the developed countries in the world is of concern.
Perhaps this is part of the reason why the Bank of England today attempted to talk up the UK economy by suggesting that the worst was over and growth rates would return to 4% in 2011 and 3% thereafter. The Bank of England has in the eyes of many people been one of the more downbeat observers of the UK economy and today's change of forecast could well be a significant turning point. Is this a false dawn or is this the real deal?
As we mentioned in one of our earlier post, many analysts have been hit by so-called false dawns in the UK economy over the last 12 months making them more cautious and more wary of calling a turning point on the road to recovery. However, it does look to all intents and purposes as if we have turned the corner but time will tell!
Share this..
Related stories
Manufacturing data supports hopes of recovery in worldwide economy
This week we have seen positive manufacturing data from China, the Eurozone, India, Thailand, the US and even the UK. Despite the fact that recovery in the above areas is progressing at a very different speeds there are hopes that positive manufacturing data released this week could mark a significant turning point in the recovery of the worldwide economy.
The most startling turnaro...
Is the humble cheque set to be terminated?
Despite opposition from small businesses and consumer groups, UK banks are set to vote next week on the possible abolition of cheques as a method of payment in the UK. While this has been an ongoing situation for some time, there are still around 3.8 million cheques written every day in the UK although this number has fallen by 66% over the last 20 years. So why are the UK banks looking to abolish...
Read MoreOne in three worried about Britain's economic situation
More than one in three people say that they are worried about Britain's economic situation and as many as 15.3 million consumers feel financially worse off, according to a poll by uSwitch.With 38 per cent of people who applied for a new credit card being denied in the last three months, consumer confidence is crumbling as the credit crunch starts to take hold.According to the poll, as people worry...
Read MoreUK manufacturing orders still under pressure
The CBI has today attempted to pour cold water on hopes that the UK economic turnaround is just around the corner. The CBI industrial survey into UK manufacturing orders shows that the balance of order books fell to -59 in July from -51 in June. There had been hopes of a partial recovery in July but these have been dashed in the short-term.
However, the export order survey was sligh...
UK Tops European Corporate Investment League
Despite all of the doom and gloom surrounding the UK economy at this moment in time, it seems as though the UK is still the first port of call for many foreign investors looking to investment corporate funds. A Study by KPMG has shown that the position of the UK in the European market is growing in strength even though the UK has not always been seen as wholly comfortable with the EU state concep...
Read More