The Battle Continues in 2013
One common question is to comment on currency FX and what we see ahead for sterling in particular.
So far this year sterling has fallen against the euro from the turn of the year at 1.22 dropping to 1.14 before Easter to be sitting now around the 1.18 mark.
The value of these two currencies will vary depending on market confidence behind the strength or perceived weakness of the UK and European economies.
In Europe, economic confidence is low, interest rates have dropped again and comments from the European Central Bank suggesting that negative interest rates are not inconceivable in an aid to boost the Eurozone economy have seen the euro falter.
In contrast a recent pick up in the UK economy has lessened the chance of further monetary easing and asset purchases in the near term by the Bank of England leading to strength behind the economy and the currency itself.
We would suggest caution during 2013 over which currency will prove the stronger and that any individual investing for income and looking for better returns should take practical, professional advice before making any decisions.
We will continue to update you in our regular feature on Foreign Currency.
