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Sterling ‘to remain unstable before GDP announcement’

Whatever the results of the gross domestic product (GDP) announcement today, sterling is likely to remain unstable, an expert has predicted.

Whatever the results of the gross domestic product (GDP) announcement today, sterling is likely to remain unstable, an expert has predicted.

Mark Bolsom, head of UK trading at Travelex, has claimed that there will be some last-minute positioning prior to this which will see the pound traded independently of the euro or dollar.

“If the data goes against the expected growth forecast, we expect that the pound will suffer significantly,” he stated.

While predicting GDP growth of 0.4 per cent during 2010 he claims that the recovery for businesses remains “intangible”.

Mr Bolsom stated: “They still have to make redundancies and slash budgets as their recovery remains sluggish.”

While he acknowledges the risk of a double-dip recession, he suggested that exporters are likely to benefit from the continued weak pound.

Last week, JP Morgan Asset Management reported that quarter four growth in China was 10.7 per cent, bringing the full-year total to 8.7 per cent.

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