Concerns for Budget Cuts Undermine Pound’s Performance

The Great Britain pound declined against the U.S. dollar and Japanese yen after the survey showed that the households’ pessimism about their finances increased and the outlook for the job security amongst the public sector workers worsened on the expectations of the coming budget cuts.
The survey showed that 43 percent of the households expect their financial conditions to worsen in the near future, the worst reading in more than a year, and the public sector workers have the worst outlook about security of their jobs since the beginning of the survey. The government plans to perform 6 billion pounds ($8.6 billion) cuts now and will hold the emergency budget next month to make more cuts.
GBP/USD traded near 1.4422 as of 9:58 GMT down from the opening level of 1.4465. GBP/JPY traded at about 129.85 after it opened at 130.47.

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