The Pound in 2010

If you aren’t already doing so, keep an eye on the pound.  No, not the Christmas pound(s) you gained thanks to too much chocolate, but the UK’s currency.  This year, it will have an interesting journey as it struggles to regain lost strength against mainly the euro.

On Tuesday, it gained thanks to good news from Britain’s retail sales figures and the narrowing trade gap.  But ahead there is a pile of obstacles in the pound’s way – chiefly the massive UK fiscal deficit, which is already weighing heavy on the Labour party.

In June, the country will hold a general election and until that has been dealt with, many currency exchange experts do not predict that the pound’s gains will stay largely capped.  This is because of the general uncertainty over the country’s political and economic future.

So, keep an eye – it will certainly remain interesting, if not yet quite appetising enough for investors.

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Explore posts in the same categories: Economy, Finance, News, Retail

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