Pound & Sterling Currency Forecast for 2010 News.

01.06.2010  The euro,  fell more than 7 percent against the dollar in May and hit a new four-year low on Tuesday due worries that the  debt crisis is spreading to its banking system. It is down 14 percent so far this year.
Sterling made significant gains against a weaker Euro yesterday.

Pound/Sterling Forecasts.

Many people are wondering what happens next in the currency markets as first the euro was hit by the financial bailout of Greece and worries about Spain and Portugal.

Then we have the Euro falling two cents against the dollar after Spanish bank Cajasur was taken over by Spanish authorities. Cajasur ran into trouble due to its exposure to the Spanish housing market like many of the 45 savings banks operating in Spain but the property collapse has now left these banks with with debts worth 445bn euros, according to Goldman Sachs. The Bank of Spain has taken over the running of Cajasur, giving it access to 550m euros of emergency funding and at least 16 other Spanish banks are now in discussions to merge to try and get financial stability. This has led to analysts questioning the ability of the Spanish government to repay its debts and the IMF has called for major reforms to ensure economic recovery for Spain.

What is for sure nobody knows what happens next or we would all be making millions from currency speculation against the dollar, sterling, yen, or pound but forward rates are available and as of the 31/05/2010 these were the forward rates the markets were offering on sterling against leading currencies.

Euro v Pound

Rate @     31/05/2009 0.8416

Forecast   September 2010 0.851

Sterling v Dollar
Rate @    31/05/2010 1.4456

Forecast   September 2010  1.4536

With the current turmoil in the financial markets nobody knows how sound these forecasts are but good to see speculators expexting the pouns to strenghen against the dollar.

Pound & Sterling Currency Forecast for 2010