Great Britain Pound Slumps After UK Budget Deficit Widens

The Great Britain pound slumped against the major peers today. Domestic macroeconomic data was detrimental to the currency, showing that the budget deficit widened last month.
UK net public borrowing increased by £1.4 billion to £12.1 billion in August from a year ago, far above the median analysts’ forecast of £9.0 billion. It was the biggest shortage for the month of August since 2012. The negative data made traders question the Bank of England’s ability to firm its monetary policy, and such uncertainty is not helpful to the sterling.
GBP/USD dropped from 1.5507 to 1.5432 and GBP/JPY dipped 1 percent from 186.96 to 184.97 as of 12:56 GMT today.

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