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Forex Flash: USD wins over investors relative to GBP – Investec

FXstreet.com (Barcelona) - According to Lee McDarby, Corporate Treasury at Investec, “The GBP’s weakness is clearly due to the fact that the dollar is winning the beauty parade for investors right now as when we look at the pound against other currencies it seems to be performing fairly well at the moment.”

Mervyn King went out with a bang as he gave his final Inflation Report yesterday morning during which UK GDP forecasts were surprisingly revised upwards and it was revealed in their backcast that they believe the UK never actually entered a double-dip recession which is likely to firmly remove any talk of triple-dip recessions from the table. “This has helped to consolidate GBP/EUR above 1.18 but the fact that such positive news has not kicked sterling on to another level suggests that the market does not have much appetite for the currency right now.” McDarby adds.

Whilst on the topic of Britain’s relationship with Europe, David Cameron was embarrassed in the House of Commons yesterday as the Tory party’s stance on an EU membership referendum was proven to be very disjointed with far more conservative MPs than expected expressing their dissatisfaction with his European policy.

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