Despite Currency Exchange Uncertainty, the Pound is Still a Better Bet by Isabel Marant BEKKET wedge sneakers blanc noir John Simpson

Despite Currency Exchange Uncertainty, the Pound is Still a Better Bet by John Simpson Political and economic doubts have weighed heavily on Sterling recently but the possibility of further damage to the UK currency is exactly that, a possibility - whereas you can be certain that the euro is in for a bumpy ride in the coming months.Given the complexity of factors involved and given that all exchange rates work in the same way as a pair of erratic, demented scales, it's understandable why many would think that currency forecasting is a mug's game. One currency's fall inevitably triggers another's rise, we all know this. At the other end of the pound's seesaw sits the euro, and at the moment backing the pound to take the high-seat seems to be a good bet to take, according to some.Of course, this view could be flattened with post by haiyan114 a series of smartly crafted points citing hung parliaments, credit downgradings and the small matter of an eternal fiscal deficit suggesting that sterling isn't a horse worth backing in the GBP/EUR showdown. However, anyone keeping an eye on the news for the past three years won't think of Britain's economic woes and weaknesses as being much of a surprise.Christina Weisz, from currency exchange specialists Currency Solutions, sheds some light on this issue. "Sterling has already fallen by more than 25% since 2007, reversing the 25% increase that had occurred since the late 1990s". "It's virtually common knowledge amongst economists that we've needed higher exports and lower consumer debt to solve the problem." So it would seem a little more doom and gloom won't necessarily raise eyebrows. "The real question is whether or Isabel Marant BEKKET wedge sneakers blanc noir not the pound will drop another 25%", says Christina. "Having already tumbled 4% in the past month, sterling could theoretically fall even further."Countering that threat though, is the fact that however shrouded with uncertainty about its strength and durability it may be, economic recovery has begun. So now we have to leave that to simmer for a while whilst all the focus falls on the politicians. Someday, sometime, in the not-too-distant future an election will be held, a government will be Isabel Marant formed and everyone will expect a plan for dealing with the budget deficit. The indecision surrounding this process will in the meantime, harm UK currency's progress, albeit to an incalculable degree.In Europe things aren't much better but at least they're a little clearer. The situation in Greece and, lest we forget, that of the other members of the Euro-Zone's 'PIGS' doesn't bode well for the short-term recovery of its economies. Basically the Germans are holding the euro's reigns, as they attempt to lay down the law banning any bailouts for countries that fall behind or break the rules.As a result, Greece will continue to slash its budget deeper and deeper. Maybe once the austerity packages have become well established, loans will then be made from EU funds to assist the country in rolling over its debts. The point here is that Greece must take the initiative and the changes must be theirs to make, in the same way as it is for Ireland and will soon be for Spain.In 1999, the euro was born into an economic environment and currency exchange climate which has now changed completely. Now, unless Germany and other northern European economies pull off a surprisingly strong rebound in their own investment, the outcome will likely be a dismal few years ahead for Euro-Zone growth.When placed alongside that, the British situation doesn't look quite so torrid, even though Euro-Zone stagnation would be a bad thing for the pound, as a great deal of UK trade is with Europe, the UK's devalued currency makes it probable that British exporters will continue to pick up market share there.So, with this in mind, it might be beneficial to see the pounds short-term demise as a warm-up for a stride in the other direction at the expense of the euro.

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