clipped from: currencymarketupdates.com June 18, 2009
Following yesterday's cautious assessment from the Bank Of England, sterling dipped after a good run. The dip in sterling yesterday was not hugely significant (1% against the euro and 0.8% against the USD) but it does dampen recent expectations of targeting 1.20 on the EURO and 1.70 against the USD.
Sterling dipped sharply on the news against across the markets dropping a full cent against the US dollar and 0.6% against the euro.
David Blanchflower (former MPC member) warned that we have yet to realize how painful economically the next few years will be, Blanchflower's opinion is well regarded as he was one of the few voices warning of the full economic impact of the sub-prime fall out before the reality of it kicked in.
Lack of a clear plan to reduce this debt will lead to weakness in USD and the pound.
Report by Phil McHugh
Currency Market Updates are compiled by Tom Nadir.