Pound up slightly as G20 promise stability

Sterling has recovered somewhat overnight following losses this week, as the G20 group of nations promise to bring stability to financial markets.

The risk that the economies of Europe and the USA may fall back into recession still looms large however. Sterling is particularly vulnerable to problems in economies around the world as well at here at home, due to our exposure to worldwide banks and trading relationships.

We are also expecting further Quantitative Easing in October or November which will be likely to hurt the Pound in the medium term.