Sterling/ Greenback Gained 10.71% in 2009

The STERLING appreciated vis-à-vis the Greenback today as cable tested offers around the US$ 1.6235 level and was supported around the $1.6050 level.

Former MPC member and current CBI chief Lambert warned election politics could jeopardize the U.K.’s economic recovery. Cable gained 10.71% in 2009.

A Bank of England survey released this week reported banks were more willing to lend to homeowners and Firms in Q4 2009.

The quarterly credit conditions survey also indicated the availability of mortgage loans is expected to rise in Q1 2010 also.

Data released in the U.K. this saw Nationwide December housing prices rise 0.4% m/m and 5.9% y/y.

Prime Minister Brown talked up the U.K.’s economic growth prospects yesterday but acknowledged the economic recovery remains “fragile.” Brown must call a general election by early June.

Large spending cuts will likely be required to improve the U.K.’s fiscal position.