Forex News

The Pound reverted a winning trend in the beginning of the week to plunge and lose versus most of the majors towards Friday’s session end, as stocks and commodities fell globally decreasing attractiveness for the U.K.’s currency, which is also facing a downgrade in its GDP forecasts figures.

When Dubai World, a state-owned investment company, affirmed in the middle of the week that it would reschedule its debt payments, equities around the world dropped sharply and the pound lost significantly especially versus refuge currencies like the U.S. dollar and the Japanese yen, since investors prompted to protect their portfolio from losses as the MSCI World Index posted two negative days towards the end of the weekly session. Internally the U.K.’s economic outlook didn’t provide support for the pound to resist international pressure as Chancellor of the Exchequer Alistair Darling is likely to downgrade future expectations for the country’s economy on a pre-budget report to follow in the second week of December.

The pound’s attractiveness has been affected by 2 distinct factors this week, on one hand, Dubai’s debt declined attractiveness for any kind of risky investment and on the other hand, the British economy outlook still remains a problem, since the country has not been as resilient as other nations around the world, setting the pound down again for another week.

GBP/USD closed at the price of 1.6498 from an intraday comparison of 1.6529. EUR/GBP closed at 0.9082 from 0.9015 on Monday.

If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.

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This entry was posted on Saturday, November 28th, 2009 at 4:57 pm and is filed under Great Britain Pound. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.