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Beecroft: Sterling's climbed too high, look for the dip
UK chancellor, George Osborne says the economy is "turning a corner" and is the early stages of recovery.
On the back of his comments the pound rose to its highest level against the dollar in 12 weeks, and is trading at around a 7 month high against the euro. Saxo Bank’s Nick Beecroft says the currency has got a bit ahead of itself. He thinks we will see some push back from Bank of England governor, Mark Carney, which could provide some trading opportunities.
He is also positive about global equity markets as he thinks we are in a world where interest rates are starting to normalize. But although he feels the western economies are in a position to withstand a rise in rates, he is concerned about the effect on emerging market economies - with hot money leaving on higher rates.
While positive on the economy’s progress, Chancellor George Osborne did warn that risks remain, Nick says the biggest risks are exogenous, and that Syria although very disturbing, won’t have global economic implications.
01:38 minutes
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