Resurgence predicted for sterling

<p>Sterling has been predicted to have a resurgence.</p>

A resurgent period for sterling has been predicted, with the currency expected to see a short-term bounce in the coming weeks and months.

Pressure on the pound has been growing in the last few years and it has slipped against the dollar, but according to Jason Gaywood, director of corporate premier services at foreign currency exchange brokers HiFX, the time is right for a rebound.

He explained this is due to the fact that focus is going to shift back to the "massively unresolved issues both in the Eurozone and across the Atlantic".

Mr Gaywood picked out the current political instability of Italy as one of the key reasons why sterling is set to become a more attractive option for investors in the near future.

The country is currently without a leader in the wake of its general election.

Recent news that the Bank of England is considering the notion of negative interest rates led to a flat period for the pound.

Learn about the sterling and forex trading at City Index.

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