Sterling: hamstrung by the latest round of QE?

Kit Juckes at Societe Generale
Kit Juckes, SG CIB

Sara Yates, forex strategist at Barclays Capital in London
Investor concerns about the eurozone debt crisis have clearly escalated over recent months and this has increased the risk premium on all European currencies, causing them to underperform against the US dollar. We expect this to continue as we believe eurozone issues are likely to get worse before they get better. Sterling is in an interesting position – of the European currencies, it has a number of advantages. It is the fourth most

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