The pound dropped yesterday and today ending a winning streak of more than a week versus several currencies as the country’s budget deficit increased to an all time record high, showing that despite positive data, the British economy is still far from healthy.
After several days gaining versus the dollar and the yen, the pound started to fall this Wednesday and continued today after its budget deficit widened to the highest rate since this reading started to be made almost two decades ago. The pound tumbled from the highest level in almost 6 months versus the euro, which has been suffering on some of Eurozone member countries budget deficit, but today, the growing British budget deficit was stronger than concerns regarding Greece, making the pound was one of the worst performers in
The U.K. public finances are a big downside for the pound’s outlook, according to specialists, and the country’s budget deficit was the perfect reason for traders to take profits and for the pound to suffer a correction after so many days advancing versus the greenback and the yen.
GBP/USD traded at 1.6205 after trading as low as 1.6122 hours earlier, and from an intraday rate of 1.6280. GBP/JPY traded at 146.47 from 14862 yesterday.
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