Biggest drop in confidence since 1992

This morning's UK consumer confidence survey has shown its biggest fall since 1992.

Consumers are increasingly expecting a painful 2011, both in their own financial circumstances and the economy overall. With VAT up to 20% and negative growth, talk of a double-dip recession is increasing.

This is all bad news for sterling, which is continuing to fall. Unless the Bank of England decides to raise interest rates soon (which seems very unlikely), the Pound could be in for a negative period ahead.

To avoid the risk of falling currency rates making your own overseas purchase more expensive, remember you can fix and guarantee your exchange rate up to 2 years ahead with Currency Index.