UK pound is struggling today, especially against the euro. Concerns about the economy continue to weigh on the British currency as austerity measures slow economic growth.
George Osborne‘s austerity plan has been backfiring quite a bit recently, and that has been weighing on the UK pound against its European counterparts. Austerity measures were meant to reduce the deficit, but it has grown. On top of that austerity is hindering economic growth.
As a result, the pound recently touched a low against the euro that hasn’t been seen for more than seven months. Pound has managed to remain higher against the US dollar, but only just, and only because the greenback has plenty of its own downward pressures.
The latest economic data to weigh on the UK pound is the home prices data. Once again, home prices have dropped, and that has many concerned about the direction of the economy. Home prices are a big deal in the United Kingdom.
With continued sluggishness from the economy, and the government not spending, there are concerns about what could be next for the UK pound, especially against the euro.
At 15:14 GMT EUR/GBP is up to 0.8178 from the open at 0.8156. GBP/USD is a little higher at 1.6158, up from the open at 1.6153. GBP/JPY is up to 136.8450 from the open at 136.2830.
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