The Outlook for Sterling in 2013

ActSmart's Foreign Exchange partner, Caxton FX, offer their views on the sterling in 2013.

Against the euro we expect the pound to bounce back from its recent weakness and finish 2013 closer to the €1.30 level. Meanwhile, our projections against the U.S dollar are far more pessimistic; we expect the rate to make a sustained move below $1.60, finishing the year near $1.50.

GBP/EUR

• Tensions in the eurozone remain unresolved and growth in the region is set to be very weak; GBP/EUR's longer-term recovery to be resumed over the course of 2013.
  
• Market nerves to intensify with respect to a possible triple-dip recession and a probable loss of the UK's prized AAA credit rating.
  
• GBP/EUR expected to regain the €1.25 level by the middle of the year, before finishing 2013 closer to €1.30.
  

GBP/USD

• Projections for a weaker EUR in 2013 dictate a firmer outlook for the greenback.
  
• Dollar to benefit from end to QE3.
  
• The Bank of Japan and the Swiss National Bank are engaged in currency intervention to weaken the JPY and CHF, so the USD will continue to enjoy status as the prime safe-haven currency of choice in a year full of uncertainty.
  
• A return to last year's levels around $1.55 looks probable with significant risks of a move as low as $1.52.
  

For the full 2013 outlook report click here .

If you would like our views on a different pair of currencies please call one of the team on 020 7201 0561.

About Caxton FX

With a wealth of knowledge based on years of experience, Caxton FX foreign exchange specialist sets itself apart by offering excellent value for money and great customer service. Their quick and secure online payment service is suitable for your business foreign money transfer needs, offering free currency transfer with no hidden costs.

Caxton FX's FastPay is an international online payment system that is designed to make overseas currency transfer more convenient. They offer a fee-free solution for your transfers abroad with great exchange rates. FastPay offers competitive foreign exchange rates with no transfer fees.

Send £100 to £20,000 at a touch of a button.

Caxton FX's FastPay online payment system is available to ActSmart members and non-members. ActSmart Gold and Platinum members will receive 5% off Caxton FX's standard foreign exchange rates.

Find out more here  

What do our members say?

"CycleMiles trades directly with Taiwanese suppliers and needs to pay for goods in USD$. After using 2 high street banks to make payments at frankly terrible exchange rates, plus swift fees of £25 ($37) per transaction, Tony Jones of ActSmart, suggested CAXTONfx to me. What a difference, great exchange rates, no swift fees and I can make the payments online. Fantastic. I now also have Caxtonfx 'Business Traveller VISA cards for when I travel overseas. Again, great currency rates & no ATM or transaction fees. CAXTONfx are definitely worth taking a look at"

Miles Hutchings, CycleMiles - Adventure Cycling Store

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