The International Monetary Fund, IMF, has come out this week and said that Sterling is overvalued by up to 10%. Analysts put this down to the booming housing market and the troubles faced in Europe and further afield.
Despite this Sterling remains at a two year high against the Euro and has appreciated over 10% against the USD over the past twelve months, with some forecasting a Dollar rally and a Sterling slump.
A raising of UK interest rates is also waiting in the wings and this could help cool the housing market and the value of Sterling.
