The pound declined today versus the most of 16 main traded currencies after a report in the country indicated that manufacturing production declined beyond economists expectations, adding pessimism concerning the recession length in the United Kingdom.

The pound is having a disappointing performance this week being traded today in the lowest level since June on concerns that new Chinese industrial regulations will reduce demand for British assets, affecting the already weakened U.K. currency.

The pound posted another day of losses versus most of the 16 main traded currencies as the economic situation in Great Britain remains behind most of the other main global economies, decreasing attractiveness for the British currency.

After a rather mediocre start in the beginning of this week the euro had a positive performance today as German business sentiment rose again suggesting that the Eurozone member countries are finding its path out of recession.

The U.K. currency posted losses today versus the euro and the greenback as stocks declined in the country and the Chinese Premier Wen Jiabao affirmed that the world economy is still facing a period of uncertainty, which brought risk aversion back in trading markets.

The pound, which benefited yesterday from a new wave of risk appetite in European markets declined erasing most of its previous gains as today, a report indicated the largest budget deficit for the month of July since 1993, raising concerns regarding U.K.’s financial health.

The pound erased yesterday’s gains this morning after the Bank of England may insist in further quantitative easing measures as an attempt to revive the weakened British economy, which was one of the most affected by last year’s credit crunch.

After rallying to a 10-month high versus the dollar two weeks ago, the pound is declining severely versus most of the main traded currencies, as the real estate scenario deteriorates in the United Kingdom, shunning investors from pound-priced assets.

The pound started another day losing versus the dollar and the euro in the European session as the Bank of England affirmed that the 2 percent inflation target won’t be met, raising concerns regarding the British economy’s health.

The pound started this week continuing Friday’s bearish trend after the Great Britain government affirmed that the current asset purchasing program will be expanded, raising concerns that the British financial system is still in a delicate situation.