Sterling forecast on the 21/05/12
Commentary:
Following on from last week, the Pound declined against the Euro on Friday, as global risk appetite weakened on the threat of contagion in the Euro-zone. As Spain's borrowing costs rose at the latest bond auction, this increased concerns that the Greek debt crisis is spreading to other Euro-zone economies.
The Pound declined against the Euro for a third day on Friday, amid escalating concern that the European debt crisis will result in the expulsion of Greece from the Euro-zone. The German Finance Minister Wolfgang Schaeuble said that financial market turmoil may last another two years, adding to concern that the debt crisis is worsening.
The threat of contagion in the Euro-zone is making investors increasingly nervous.
Forecast:
|
Current |
1 month forecast |
3 month forecast |
6 month forecast |
12 month forecast |
|
| EUR/GBP |
0.808 |
0.816 |
0.825 |
0.821 |
0.829 |
|
Sources: http://finance.yahoo.com/; www.torfx.com, www.forex.com