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Fullerton doubts there'll be parity between sterling and euro

by Catherine Woods - Monday, 15th December 2008 -

Fullerton doubts there'll be parity between sterling and euro<br />

Sterling has dropped to its lowest level against the euro but importers should take heart: FC Exchange managing director Nick Fullerton doesn’t believe parity between the two currencies will be achieved.

"The euro would have a great deal of trouble getting there,” Fullerton says. “We’ve seen the low but then sterling bounced straight back and has ended up pretty much where it was this morning.”

He believes that pre-existing orders to sell euros as the exchange rate goes lower will drive the value of sterling back up.

The recent interest rate cuts haven’t done the pound any favours and torrid economic data coming out of the UK hasn’t helped either. “The situation we’re in now has less to do with euro strength and more to do with sterling weakness,” Fullerton adds.

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