Is Sterling due a tumble against the Euro

At the height of the eurozone crisis and for those that sought safety sterling proved a popular buy. However now that Ireland has been bailed out and it's waters quelled the need for safe haven has lessened somewhat.



Take the following stats: Euro/Sterling downtrend as at October 25th stood at 89.41 p, compare this to 83.43 p on December 13th and the scenario now seems vulnerable to reversal as the underperformance and fragility of the UK housing sector remains the focus coupled with stability and strength returning to the Euro zone.



Economic uncertainty and minimal approvals for mortgages have seen asking prices fall 3% for property within England and Wales. Rightmove also forecast bigger falls in 2011. Sterling is likely to come under further pressure if the RICS housing survey confirms the negatives put forward by Rightmove.



Euro has also seen the green shoots of recovery by it's greater trading volumes.

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