The UK currency was under pressure yesterday after the pre-Budget Report failed to ease concerns over the UK economy

After briefly spiking to an intra-week high, the pound slid back against the single currency yesterday as investors digested Chancellor Alistair Darling's pre-Budget Report.

• In the Report, the Chancellor admitted that the recession had turned out to be deeper than he predicted in April. He said he expected the economy to have shrunk by 4.75% in 2009, instead of the 3.25 - 3.75% he forecast earlier in the year.
  
• While cutting his growth forecast for this year though, Mr. Darling kept his prediction of a strong recovery next year and in 2011 and 2012.
  
• He talked of the "strength of the UK economy", predicting growth of between 1 and 1.5% in the coming year, which gave the pound brief support.
  
• However, the Report did little to ease ongoing fears of the UK's fiscal debt. With increased borrowing planned for next year, concerns are likely to linger over the possibility that the UK's triple-A rating may come under threat.
  
• In trading today, the markets will be looking to the BoE's interest rate decision at 12:30 and the accompanying statement where they may shed some light on when quantitative easing measures will come to an end.