Predictions for Pound Sterling
Looking at Economics fundamentals, it is hard to understand why the Pound rose so much against the dollar in recent years. I think the main reason for the Pound’s strength is that it offered an easy alternative to the dollar, but, in looking for an alternative to the dollar the merits of the Pound has been exaggerated. With the UK economy predicted to slow down, it is highly likely we will see a general devaluation in the Pound, not just against the dollar, but also against other currencies such as the Yen and Euro.
The Dollar’s weakness has been well documented, but unfortunately many of the reasons for the Dollar’s weakness are shared by the Pound.
Why Pound is Overvalued (more…)
Original post by Tejvan R Pettinger