With sterling and euro sticking within a predictable range, averaging about a cent oscillation over the last four UK and European sessions, it is clear that the summer lull is in full blow…

The pound closed up at 1.2028 by the end of trading on Friday. All eyes appear to be on the dollar which has been hit hard by gains against both the euro and the pound. US GDP did not reach the levels that were expected. When contrasted with the GDP figures released from the UK one can argue that sterling has had a bit of respite as attention had turned towards Ministers in Europe and US. Sterling may move decisively over the next week or so. Speculators anxious to push levels are likely to capitalize on negative Eurozone sentiment, so we may see the 1.21 level tested, and when one considers that the first week of this month will be rich in data, we should hold tight for a surprise shift to a more positive out look for the pound in the long run.

Keith Spitalnick LLB (Hons)

Regional Sales Manager

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