Debt fears return to unsettle Sterling

25 June 2009 @ 10:05 am EDT

Wednesday"€™s Bank of England comments will tend to renew fears over the government debt outlook. In this environment, there is the threat that confidence in the UK economy and currency will tend to weaken. Sentiment should still prove to be broadly resilient which will limit losses unless there is a substantial deterioration in international risk appetite. Sterling faces a test of important support near 1.62 against the dollar. Support should hold initially, but is liable to break by early next week with a move to 1.5960.

For more forex information, go to www.investica.co.uk

E-Newsletters

We value your privacy. Your email address will not be shared.