A UBS analyst’s view on the pound…
“The pound ended up with a safe-haven status last year given Europe’s problems were bigger than the UK’s,” said Shahab Jalinoos, an analyst at UBS, one of three largest currency trading banks in the world. “What’s different this year, is that just as Europe’s political risk is starting to fade, the UK’s is rising.”
After two years in which trading in the foreign-exchange markets were dominated by the potential break-up of European Monetary Union, Mr Jalinoos said that traders and investors have begun 2013 looking for new trends to bet on.
(The BOE and government might well welcome weaker pound, to help exports but not if uncertainty triggers a massive sell off in UK government bonds)
Full story here …
