Euro forecast January 2014: Pound May Hit 1.2350 Versus The Euro in 2014, Highest Since January 2013
2014 may be a Happy New Year for the pound!
Sterling jumped to 1.21 against the euro last month, and may continue to climb up to 1.2350, the highest since last January, according to a new Bloomberg poll.
Here are 5 reasons the pound may climb this year:
1. Sterling may strengthen, because the Bank of England looks set to raise interest rates sooner than its 2016 forecast.
2. The pound may rise, because joblessness in the UK fell -0.2% last month, and may fall another -0.4% in the early months of 2014.
3. Sterling may get a boost, since the UK is on track to grow faster than any other industrialised country this year.
4. The euro may weaken meanwhile, because the European Central Bank is forecast to hold interest rates at record lows of 0.25% all this year.
5. The common currency could also fall, because the Eurozone is expected to see meagre economic growth this year, if any.
Given all this, watch for the pound to hit fresh heights against the euro in 2014!
