Published by Jamie JemmesonOngoing concerns about the economic situation in the eurozone continued to weigh down on sterling in foreign exchange trading yesterday (December 22nd).According to Reuters, the multi-nation currency traded at 83.20 pence after having edged close to an 11-month low of 83.02 pence on Wednesday.The newswire noted that predictions that the UK's economy will slow down early in the new year and at the end of this meant that faster than anticipated growth between July and September had little positive impact.Commenting on the outlook, Investec economist Philip Shaw said: "Our expectation is that the UK is about to undergo a short recession. We think from the first quarter on, but it is possible that contraction actually began in Q4 this year."Morgan Stanley's head of European FX strategy Ian Stannard recently told Reuters that from a sovereign bond viewpoint sterling continues to be seen as a safe haven.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site