The pound lost ground to the US dollar on Friday despite stronger equity markets, falling from a 3-month high against the greenback after UK Trade and Investment Minister Mervyn Davies said he was not worried about a further slide in the pound, and suggested a weak currency could help the British economy pull out of recession. The dollar was also helped by a weaker euro on Friday.
The pound has continued to lose ground to the dollar this morning, falling to a 1-week low as market players await the British budget due on Wednesday. The budget may be bad news for sterling, as it is expected to include borrowing projections of £170bn, while Chancellor Alistair Darling is expected to reveal that the economy will contract by as much as 3.5 % this year compared with his prediction of a 0.75 to 1.25% contraction in the pre-budget report last November.
There are no economic releases due from Britain today, while the only release from the States will be US Leading Indicators figures at 15.00 BST.
No comments:
Post a Comment