The UK pound falls for third day in a row
It will come as no surprise to currency dealers to see the UK pound fall for the third in a row with Mervyn King and Ed Balls adding to the doom and gloom surrounding the UK economy. Mervyn King, the Gov of the Bank of England, has suggested that the UK is currently in a deep recession which will see interest rates fall further and further and more and more money pumped into the UK economy. Ed Balls, schools secretary for the UK government, has also entered the fray suggesting that the UK recession is comparable with the 1930s depression.
While the comments of Mervyn King are widely respected in the market, many people may not be aware that Ed Balls spent a substantial amount of time at the Treasury and is well aware of economic cycles and the potential for the UK recession to worsen in the short term. This added degree of risk and negative comment has seen investors selling the pound on currency exchanges after a brief period of respite over the last couple of weeks.
Slowly but surely the more upbeat comments from Gordon Brown are being drowned out by the more negative aspects of the UK economy and the comments from people such as Mervyn King and Ed Balls. Is the PM losing control?
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