Back to the future for the pound

Source: www.forexlive.com

The potential for more QE (choose between medium, GBP25 bln or large, 50 bln), the proposed break up of some of the big banks upsetting an already financial landscape, and the dire state of public finances are overshadowing signs that the weaker pound versus the EUR is helping revive UK manufacturing. The fact that we’ve seen the pound slump on fresh bad news suggests last week’s rally was indeed M&A flow-driven and that weakness could return in earnest in the weeks ahead.


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