by Damian -
Forex traders continue to kick the Pound to Euro exchange rate but it has been a very tight range since the initial fall from 1.2170 to settle at 1.2000.
It is very frustrating as the news in the UK is good compared to the Euro-Zone and the likelihood the BOE will have a raise rates as the UK housing market is continuing to head north which should help. (Maybe time to become a Real Estate Agent or Mortgage Broker – could be better money!). So therefore this should be Pound Exchange Rate positive not looking at walking the gallows!
Compared that with the Euro-Zone which has raising Unemployment and falling House prices and increasing threat of deflation – hardly Euro exchange rate positive unless your Super Mario and live in cloud cuckoo!
Still we need to trundle to work with the belief that all Forex traders aren’t stupid! (Unless of course you work for UK Bank and with all the allegations of rate rigging, decide it is a good idea to Tip off BP that a $500 million FX deal is going to happen.)