The Sterling lost ground to the USD on Monday under a EUR centric cloud certainly, but it must be pointed out that the U.K. has a large amount of exposure financially in Ireland through banking and this is a direct weight on sentiment. The BBA Mortgage Approvals numbers will be published today. Tomorrow the Revised GDP statistics are on the calendar. The GBP has performed relatively well in the wake of the newest round of concerns surrounding European debt. While it is clear the U.K. is not part of the monetary union within the European Union, it remains to be seen if the U.K. will be asked to step forward like Germany and help out its ‘brethren’ in the E.U. – of which it is a full political member – and offer financial aid.
Written by bforex.com