‘Sterling will be strongest in 2011'; FTSE to rise 18%

Sterling will be the best-perfoming major currency next year as the UK gets its "house in order", according to forecasts from Barclays.

Barcap, the securities arm of the retail bank, also used its 2011 outlook to predict equities will outperform government bonds and the US economy will stage a stronger recovery than in 2010, the Telegraph reports. The pound, which has been hard hit since the financial crisis, will end next year at $1.82 against the dollar and 78p versus the euro, it was estimated. The currency closed on Thursday in London at $1.5728 and 84p. The UK currency's performance will be matched by a strong showing for the FTSE 100, which Barcap expects to rise by about 18% next year and offer a further 4% ret...