U.K.’s Recession Concerns Push Pound Further Down

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.
Today during the start of the European trading session, U.K. gilts rose and the pound lost versus most of the 16 main traded currencies as the outlook for the British economy stills more negative than most of other global economic regions. The quantitative easing program to be expanded by the Bank of England halted the strongest winning streak for the pound which brought it to a 10-month high versus the dollar and a 1-month high versus the euro, as these measures can be interpreted as an attempt to rescue the problematic economic situation in the country.
A rare economic phenomena in the U.K. is leading analysts to believe that the end of the current recession will not be necessarily followed by times of prosperity, which is definitely weighing on the pound. The artificial credit system made the United Kingdom to be one of the most economically successful countries in the European Union for many years, but from now on, the Brits will have to rely on different methods to bring growth back to the nation’s economic figures.
GBP/USD fell to 1.6627 as of 11:23 GMT from an opening price yesterday of 1.6685. EUR/GBP climbed to 0.8539 from 0.8499.

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