The pound was once again hit by negative domestic data which forced the British currency down versus the euro, Swiss franc as manufacturing in the country declined to the lowest level in more than a decade, raising concerns about the British economic future.
The British pound lost today specially against the euro after a domestic report in the country indicated that manufacturing production slid much beyond forecasts and to the lowest level since 1992, leaving speculations that the economy in the U.K. remains in a very delicate condition. The pound was climbing as a report showed an increase in house prices for the third consecutive month in September, but the manufacturing report came much below expectations, making it unable for the British currency to sustain its rally, entering once again, a downtrend.
Analysts point that the British currency is being a victim of the credit crunch in the U.K. and its consequences. According to some economists, the previous years of economic growth in Great Britain were fueled by artificial loans which ended up in when the credit bubble exploded last year, and since then, the Bank of England and the country itself have been struggling to reestablish the country’s financial system and economy out of recession.
EUR/GBP traded at 0.9240 as of 10:39 GMT from a previous rate of 0.9175 yesterday. GBP/CHF traded at 1.6341 from 1.6473.
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