The Pound slumped to a one month low against the Euro on Friday but has been recovering so far today. It also suffered more losses against the US Dollar on Friday as UK exposure to problems in Ireland has been under scrutiny.
Poor consumer confidence figures as well as concern over the exposure of UK banks to European debt pulled down Sterling at the end of last week.
This morningââ¬â¢s mortgage approval figure for October has come in slightly lower than hoped for at 45,000 rather than 47,000. Also in the headlines is the CBIââ¬â¢s downgrading of its forecasts for UK economic growth in the first quarter of 2011. The CBI stressed that a fall back in to recession was not a possibility but that it now expects growth to be 0.2 rather than 0.3 percent due to job cuts and high inflation. Although this sentiment is unlikely to help Sterling, the fact that it also suggested that the Bank of England will start raising interest rates within six months to help bring down inflation will be more positive.
Final revisions to third quarter GDP and the release of the bank of England minutes will be the main UK events this week.
Overseas money transfers may mean huge losses in exhange rate changes to avoid this receive currency advice and quotes from Currency Solutions.
