FX Week

Euro/sterling set to rise

Making investment decisions in the current global environment is a contest between the least ugly rather than the most beautiful. The UK therefore has a number of positives in its favour, particularly against Europe and Japan. But since late 2002, sterling has been losing ground on a trade-weighted basis, largely reflecting a rise in euro/sterling. Cable, on the other hand, continues to climb, locked tightly as it is with euro/US dollar. The strength of the link between euro/US dollar and

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