F/X weekly comment

It's been an interesting week, in a dull sort of way. My gloomy scenario for sterling hasn't materialised, but that doesn't mean that we're out of the mire, by any means. What has actually happened is a 'Time Out' , and we will wait with baited breath to see what will happen about Greece and the overall Euro debt scenario.

Big weekend

This was always going to be a big weekend, and it won't disappoint. It will be a very important for the future of the Eurozone, and without any doubt sterling's value against the Euro will continue to be dictated by the outcome of this weekend's discussions between EU leaders to sort out the future of Greece and the other threatened peripheral economies.

As I write this, the news that they do not expect to come up with any significant declaration over the weekend and have postponed any major statement until Wednesday has done nothing to calm anyone's nerves, and may serve to weaken the Euro. .

Sterling?

Not a lot happened really. What announcements there were virtually cancelled themselves out. There was a good news story in that the UK Public Sector Net Borrowing figure for September came in at a lower than anticipated level, but to offset this the Nationwide Consumer Confidence survey showed that British consumer confidence contracted for the fourth month in succession.



What next?


Probably a lot more to talk about next week. We are at 1.1480 now, and we could easily be at either 1.1700 or 1.1200 by this time next week. To be honest, I suspect somewhere towards the lower range, but as ever I'd be happy to be prove wrong.