Sterling is set to come under strong selling pressure into the close of 2012 with a deterioration in fundamentals and fresh economic concerns. There will be a renewed GDP setback for the fourth quarter and, even if negative GDP growth is avoided, the underlying trajectory will not be strong enough to deliver a sustainable improvement in government finances. The type of perma-recession suffered by eurozone peripheral economies is not on the agenda for the UK, in part because sterling is free-floating and the strain of economic vulnerability will be taken through a weaker currency. The relative perspective will lessen ... (full story)