Sterling didn't have a great week or so losing a little bit of ground against most currencies. No clear reason why this should have been the case and I think it was more likely a situation of better news elsewhere. The UK housing market seems to be slowing which will affect consumer confidence. We also wait for the minutes of the Bank of England minutes which will, hopefully, give a clearer picture of how they view the economy, inflation and interest rates. I suppose we should be pleased that there have been no further "Northern Rocks" this week.
The Cypriot £, which is pegged to the Euro, sits at an inter bank rate of Cy.£0.835/£1 and continues to benefit from strong economic data and not just from Germany. French and Italian industrial data has also been good. It has to be remembered that a lot of exports head east rather than west. The economies of India, Russia and China are all on the up and as such imports from Euro land are not, at this stage, being unduly influenced by what is happening to the US$/Euro exchange rate. The Cypriot £ is likely to have the upper hand for a while and seems like a good time to bring funds back.
No comments:
Post a Comment