A Currency Outlook For 2010

The UK has been in some hot water lately with2008 was up... their interest rates were almost zero.
respect to their currency. with the eventuality of theThey aren't very far away from zero at this point, and
recession settling in like a storm over the island, it isother financial stimulus packages have started up the
starting to look like they are going to be out of theeconomy, in many instances more effectively than
thick of it before any other industrialized country.than their sisters across the ocean, despite a large
However, there are some indicators that you mayamount of external and internal criticism of their
have to pay attention to in order to time the marketactions.
right...It is hard to talk about the UK without at least
The Bank of England can easily be described as anmentioning their economic behemoth neighbors,
aggressive bank with respect to trying to save theirGermany. While early in 2009 they were very
financial system. It has been constantly cutting interestreluctant to artificially stimulate the economy, they
rates in order to keep the economy borrowing andended up doing so by attacking the interest rates, just
spending, much like its counterparts in the Unitedas England had been doing all along. This has
States. While the rates have actually increased sincepromoted an effect on the Euro that has steadied it
the beginning of 2009, the only way they had followingover the last year.