Currency Exchange UK

 

Pound under Pressure pre Budget

Pound under Pressure pre Budget

On Monday, the pound recouped some of its Friday losses against the US dollar but overall pressure on the currency remains noticeable as investors await the Budget announcement this week. 

On Sunday, Chancellor Alistair Darling said that there would be no “pre-election giveaways” and that he would instead be announcing a steadfast plan to support economic growth and cut borrowing.

However, there have been widespread calls for stronger cuts on spending in order to reach the target deficit cuts in time. 

Many analysts are hoping that Mr Darling will give some indication on plans to tackle deficit, yet it is generally felt that overall concerns on the economy will remain.

There also remains a continued concern over the UK’s current triple-A sovereign rating. 

Earlier in the month, several of the large ratings agencies had their eye on the UK, yet while some commented that the current rating is in jeopardy, others stated that right now the triple-A is safe.

However, the main part of investor doubts are still focussed on the euro which is still weighed down by the problems of Greece.   This continues to take the main focus away from the pound, according to currency analysts.