Forex Focus: what the VAT rise could mean for the pound

Extract . . .

Liz Phillips takes a look at the impact last week's VAT increase could have on sterling.  In normal times - remember them? - a rise in the VAT rate might be expected to send the pound in only one direction: up. Of course we all know these are far from normal times.  The British economy is not yet out of the woods and inflation is already above government target levels. And we are not alone in our troubles.

Read more here
http://www.telegraph.co.uk/finance/personalfinance/offshorefinance/8252890/Forex-Focus-what-the-VAT-rise-could-mean-for-the-pound.html