Foex Trading Forecast: U.K. Pound

September 8, 2008 by Trader Rich

Sterling outlook in currency trading remains bleakThe forex trading forecast for the U.K. pound remains rather bleak. Indeed, far from receiving some improvement from last week’s dire predictions, the sterling outlook for currency trading may have become worse.

Some currency analysts are predicting that the U.K. pound could fall as much as 20 percent more in FX trading. Even in its incredibly weakened state, there are assertions that the sterling is still massively overvalued against the U.S. dollar in currency trading.

This analysis, of course, means that it is very likely that the Bank of England will have to cut rates at some point. The BoE has been rather stubborn about cutting rates, but at the rate the British economy is sinking, the body can’t hold out much longer.