Corporate foreign exchange news

Risk management 'could pull pound lower next week'

Friday, 26 February 2010 10:16:54 GMT

Published by Jamie Jemmeson
The pound may surpass recent nine-month lows next week to trade around the $1.50 mark, according to Investica.
In its daily foreign exchange trading update for sterling, the investment expert explained that the publication of revised gross domestic product figures will weigh heavily on trading when published later today (February 26th).
A downward revision to the fourth-quarter figures will put considerable pressure on the 0.1 per cent growth recorded in preliminary estimates and bring the end of the recession into question.
Such an announcement would bring volatile downside risks for sterling that could continue well into next week, Investica said, while any uptick from more favourable data is likely to be short-lived.
"There was stronger than expected figures for the latest CBI retail sales survey, but the potential positive impact was offset by persistent structural fears as confidence in the debt situation remained very weak," a trading note from the group warned.
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