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Sterling volatile on uncertain outlook

The week began with the Pound achieving 7 month highs against both the Euro and the US Dollar, as well as a basket of other currencies. This came with investors starting to feel that most of the bad news for Sterling is already priced into the market.

This was aided by the Euro weakening after news the ECB is planning a 1 year refinancing operation.

However within 24 hours the Pound had dropped 2c against the Euro and US Dollar, as UK Share prices fell and investors pulled back out of what they now considered riskier UK positions.

Gains were then made back after comments from the Bank of England stating that the early signs where positive on the Bank's policy of buying £125 billion of UK assets to boost the economy.

These gains again slipped away after the Governor of the Bank of England stated he had genuine concerns about how quickly the UK economy may recover, and with a UK Rightmove survey stating that house prices had dropped once again in June.

So all in all a very volatile week, with many good opportunities to both buy and sell currency, depending on your particular needs.

Whatever your currency requirements, you should contact a reputable currency broker, who can help you work out the best strategy to handle your individual situation. Your bank will not be able to offer the best exchange rates, whereas a broker can help you achieve the highest levels.

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