Alan Collins from 3c Analysis is calling for sterling weakness in 2015. With the upcoming UK elections, he believes that volatility will be introduced as the unknown entity UKIP gains momentum. Typically the economic impact of these elections would be muted, but the rise of the UKIP creates additional volatility due to potential coalition issues.

Sterling has weakened against the dollar over the past five months, and is predicted to weaken against a basket of currencies. In EURGBP, Alan is calling for a base to be formed around 2008/12 lows at EUR 0.7700 and EUR 0.7750. The results of the UK election will most likely also have an impact here.

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