How low can it go?

How about this for a spread betting dream? If you backed the right horse you should have cleaned up on sterling last week as once again UK officials managed to put the slide on the ever sinking Sterling. The Pound shattered the 7-year low against the Dollar and managed to hit an all-time low against the Yen.

We could ask the question whether it suits those in power to have a lower currency. This kind of pound, lower exchange rate, will help exports and try to ignore the worry over depreciation and higher inflation. Is it as bad as the early eighties, as some have said? Well inflation then was around the 16% mark!

But what does all this mean for the forex trading sector? Well it’s a big bonanza if you get your predictions right because combining a multi-billion giveaway with a call for banks to say just how much mess they’re really in sees speculators on the short bet rallying on bank shares.

And who knows where it will stop? The main thing to remember is to keep your margins within affordable limits; to hold your nerve and back your own instincts.