Sterling recovery 'will not occur soon'

It is unlikely that sterling will recover from the fall seen earlier this week in the immediate future, one currency analyst has predicted.

Caxton FX’s Duncan Higgins said that the ’near-term outlook is looking particularly weak’ for the currency at the moment, a comment that may dissuade those looking to invest their personal wealth from purchasing the pound.

He explained that the forthcoming release of non-farm payroll statistics in the US may place further pressure on sterling, adding that the Bank of England is unlikely to reverse its decision to halt quantitative easing in the near future, which will further limit the potential for recovery.

’We are now expecting the pound to move toward $1.45,’ he concluded.

Earlier in the week, it dipped below $1.50 for the first time in almost 12 months, after new poll results created worries in the City that there is a chance the upcoming general election will result in a hung parliament.ADNFCR-2318-ID-19647825-ADNFCR