Sterling Falls on Concerns About U.K. Budget Cuts

The Great Britain pound fell today against most other major currencies, including the U.S. dollar and Japanese yen, on the concerns about the nation’s budget shortfall and after the report that the house prices in London declined.
The average house price in the U.K. capital dropped 0.4 percent from April. David Cameron, the Prime Minister of the U.K., said that he saw evidences of “very bad practice, spending decisions taken in the last year or so of a Labor government that no rational government would have done”. The significant budget cuts to deal with the budget deficit are expected.
The struggling Britain’s economy makes the sterling risky currency, which isn’t good in the risk aversion environment. The information that the things, which already looked bad, were actually even worse haven’t helped the investors’ sentiment.
GBP/USD traded near 1.4426 as of 17:09 GMT today, falling from its opening level of 1.5328. GBP/JPY traded at 132.88 after it opened at 134.05.

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