An economic slump in the Eurozone could be good news for sterling if the European Central Bank, who are now forecast to cut interest rates at some point this year, do indicate further monetary stimulus. The pound has endured another torrid week, falling across the board against its major trading partners as negative sterling sentiment dominated trading. The markets have a tendency to overshoot when the global outlook is gloomy. Guest post by Alistair Cotton, senior analyst, Currencies Direct We are at a point of maximum pessimism for the pound, with the exchange rate now reflecting everything that could possibly go wrong and more. However this is a good thing for the currency in the medium term because the situation is not as bad as the market is reflecting and positive data flow, when it comes, will lift the currency. Furthermore, a lower currency does offer opportunities for British businesses to expand into new markets as British goods become cheaper and a recovering UK economy should keep demand steady at home. Further reading: GBPUSD weekly forecast. Guest Guest View All Post By Guest Opinions share Read Next FX Solutions Leave the US Retail Market – Clients go Yohay Elam 10 years An economic slump in the Eurozone could be good news for sterling if the European Central Bank, who are now forecast to cut interest rates at some point this year, do indicate further monetary stimulus. The pound has endured another torrid week, falling across the board against its major trading partners as negative sterling sentiment dominated trading. The markets have a tendency to overshoot when the global outlook is gloomy. Guest post by Alistair Cotton, senior analyst, Currencies Direct We are at a point of maximum pessimism for the pound, with the exchange rate now reflecting everything that could possibly… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
