Sterling to remain weak ‘as markets lose faith in coalition’

The markets have lost faith in the coalition government in the UK which means sterling will remain weak for the foreseeable future, said Lorcan Roche Kelly, chief european strategist with the US hedge fund, Trend Macro.

“I don’t see where [UK] growth is going to come from and that will weigh on sterling. It will obviously hurt Ireland because the UK is still one of our biggest export markets. The UK might see a lift from weak sterling, but there won’t be any sustained recovery until a new government is in place.”

The economy is mired in a triple-dip recession since the Conservative Party-Liberal Democrat coalition took office in May 2010. There have been calls for George Osborne, chancellor of the exchequer, to row back on austerity policies.