Tuesday, 17 February 2009

Pound remains under pressure against the euro

In a quiet day for trading, the pound remained pressurised against the single currency as concerns over Lloyds Banking Group heightened banking sector worries and after the Group of Seven finance ministers made no comment on the currency. Indeed, rating’s agency Moody’s downgraded Lloyds senior debt to A1 from Aa1 and the group’s financial strength rating form B+ to C+, confirming the major concerns surrounding the bank at present. News out of the eurozone was little better as it was revealed that the European Commission will launch disciplinary steps against France, Spain and Greece for exceeding the EU’s budget deficit limit of 3% of GDP.

The major news this morning will surround the UK’s inflation figures and ZEW releasing their economic sentiment survey within Germany.

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