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Pound forecast sterling currency forecast for 2012
The daily sterling forecast and the latest news for sterling vs other currencies.
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What is the pound forecast for sterling currency,
the forecast for 2012? Find out how the fluctuating pound will affect you and your savings.
The UK economy remains weak and whilst interest rises have already risen in Eurozone countries, sterling is undervalued and has been out of favour compared to other currencies, particulalry the dollar and the swiss franc. It is forecast that interest rates in the UK will not be raised until at least 2012. Visit our weekly sterling pound forecast for 2012. The issues with Greece have begun to weaken the euro as although Greece has met its repayments the debt crisis is now potentially spilling to other countries such as Spain. However sterling still has not found favour with investors as a safe haven for their cash and instead area looking to other currencies such as USD and the Yen as well as gold. The UK economy is still in trouble and unless UK interest rates rise in the near future the forecast for sterling and the euro is not a positive one. In December 2011 the pound is up vs the euro but the threat of further monetary easing in the UK weighs heavily on its value as does the weak economy.
Tim Davis who is one of the strategists at Morgan Stanley, says the
pound’s recent weakness is just the beginning of a downward trend for the pound. He forecasts the pound to fall by 4
percent in trade-weighted terms by the end of 2011 and by more than that against the dollar, to $1.49. Morgan Stanley
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