Forex update via HOW2 Service Provider
A trickle of interesting takeover announcements has suddenly become a torrent of large investments into UK companies. The Pfizer/Astra Zeneca deal and the buying of Heritage Oil by The Qataris for $1.5bn are the latest high profile deal in what is quickly becoming a trend.The view of the UK’s economy from abroad amidst the buoyant forecasts for the future has undoubtedly undergone a swift and recent turnaround.
The effect on the FX market has been minimal to date but something is likely to give soon. Earlier this year we wrote that we thought Sterling would outperform in the early part of the year but peter out against the US$ at 1.68 but continue to strengthen against the Euro and other currencies. This scenario has panned out well but in a changing world it is reasonable for us to change our forecasts. With the latest interest in investment into the UK we would now expect further Sterling strength, with some immediacy, across the board.
Our views on Europe remain the same and all though the pain of previous years appears to have gone it is still there and will rear up again at some point. Sterling could well see new highs over the coming weeks with $1.72 and Eur1.25 not being out of the question.
The requested URL /get/index.php was not found on this server.