What’s next for the £?

Steve Ruffley 75With interest rates back on the agenda with the FED and the BoE maybe we are finally now in the markets moving away from the non-existent growth figures and are looking for the inflationary and therefore next interest rate move.

I still maintain that no matter what Carney says, we are in another housing bubble. If it takes Lloyds bank to highlight this and to change the borrowing criteria, alarm bells must be running, and there is clearly some BoE mismanagement going on.

I still anticipate the BoE to raise rates in the 1st half of 2015, maybe as early as the 1st quarter.

The pound in the short to medium term should rise based on the assumption and new money flowing into the UK.

1.73287 is a key pivot point form the start of the drop from the highs in Sept 2007. If we close above this we would see 1.82320 as a target, if we see a rally there may even be a case for the Pound to get back to 2.0000.

As a global investor you have to think, where is the best place to have your money, where is  safest? The EU, hardly, the US, possibly, Russia? Certainly not. The UK look a safe bet for global investors right now.

Steve Ruffley CEO www.iViewcharts.com

Steve chart 23rd May

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