LONDON, 11 December 2014 – 2015 looks "rocky" for the British Pound, says BullionVault head of research Adrian Ash, interviewed today by leading US finance site TheStreet.com.
The Pound has risen 10% against its major trading partners' currencies since the UK's financial crisis peaked in 2011, says Adrian. FX traders have pushed it higher because, primarily, it isn't the Euro, and they have also been expecting a UK rate rise.
The Conservative-led coalition government has meanwhile been "talking up" its austerity measures to reduce the UK's huge deficit.
"Fact is though, austerity hasn't begun," Adrian explains – and the likely delay to any UK rate rise in 2015, held instead at the record-low 0.5% to help fund the government's big spending, will disappoint the currency market.
Watch the interview here at TheStreet:
