UniCredit forecast resumed QE, £1:$1.31 this year

I previously have forecast a significant fall for the Pound in the course of 2010. And I have also put myself on record here recently with a forecast of resumed Quantitative Easing within months.

Today I read a Telegraph article that presents the view of Kornelius Purps, Unicredit's fixed income director and a leading analyst in Germany, regarding the outlook for the UK government bond ("Gilt") market, and by extention the value of the Pound. His view matches mine exactly: the UK government will have no choice but to resume Quantitative Easing this year, because nobody else has been buying those Gilts last year and it is unlikely many are going to step up to the plate now, and regarding the Pound he is forecasting £1 = $1.31 during 2010.

http://www.telegraph.co.uk/finance/economics/7423138/Europes-banks-brace-for-UK-debt-crisis.html