Recession’s Return Sets Pound Down
The pound lost today versus multiple important currencies as both the domestic and the international market scenarios were rather pessimist before the end of this week’s session, setting the pound to plunge once again paring the advances earned during the middle of the week.
The economic situation in England is really having a hard time to pick up, and today, after Bank of England policy maker Andrew Sentance affirmed today that the United Kingdom may see itself back into negative economic growth, which could be understood that interest rate hikes aren’t in the BOE’s plans for the next months, shunning investors from price pound assets. Another negative factor weighing on the sterling rates is that a growing budget deficit in the country is likely to lead the government to tighten its expenses, which may reflect on the British economic growth conditions.
Not only in the U.K., but pessimism was the the rule this Friday in Europe as nobody has a direct answer to the Greek budget deficit question, setting traders back on their riskier bets. It looks like this year will not be a good one for the U.K.’s economy, again.
GBP/USD closed the week at 1.5009 from 1.5263 on Thursday.
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.
Earlier News About the Great Britain Pound:
- U.K. Housing Data Boosts Pound's Rally (2010-03-13)
- Inflation Outlook Fuels Demand for British Pound (2010-03-12)
- Bank of England's Decisions Affect Pound's Performance (2010-03-04)
- Consumer Confidence Support Sterling's Advance (2010-03-03)
- British Crisis Pushes Pound Further Down (2010-03-02)
March 27th, 2010 at 10:44 pm
Is there a new light for the Great Britain Pound to become attractive and valuable currency when compared other european currencies in the near future?What is your opinion on this currency ?Sincerely yours..
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Andrei Moraru Reply:
March 27th, 2010 at 11:00 pm
It won’t very attractive until the BoE starts hiking rates. It will be floating against the euro and will be going down against the Swiss franc.
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