UK currency under pressure
Last week was a bad week for the UK currency with sterling falling by 2.4 cents to just over $1.50 to the pound. Despite the fact that the UK economy appeared to be heading out of recession towards the end of 2009 many people are starting to turn negative regarding the short to medium term outlook. Indeed over the last two weeks we have seen members of the Bank of England's monetary policy committee airing their concerns in public which has alerted currency traders.
There are a number of issues coming together to create this negative environment at the moment which include a lack of liquidity in the mortgage market and concern about the UK government's budget deficit. Whether Gordon Brown is holding back on plans for budget cuts in the future or he really believes that investment, investment, investment into the UK will boost the economy in the medium to longer term remains to be seen. However, investors in the stock market and worldwide money markets are growing more and more concerned about the perilous state of the UK finances and the lack of action over the last few months.
Will Gordon Brown be able to keep his plans under wraps or will his hand be forced by the investment markets?
Share this..
Related stories
Unpaid women 'contribute greatly to economy', studies find
The work done by Britain's women without pay has been investigated by two separate studies, the Press Association reports.Firstly, the Yorkshire building society has found that, if all household work and other chores received a salary, the average Briton would earn an extra £8,000 a year.Moreover, the firm found that the bulk of this work - including cooking, cleaning and ironing - was being done...
Read MoreWhat caused the growth in toxic assets in the UK?
As the UK government looks to further strengthen the financial sector with a £500 billion insurance package against toxic assets many people are starting to wonder how these assets have appeared and the possible consequences for the UK banking sector. The situation has been in the background was some time but only recently has been identified as a potentially serious situation for not only the fi...
Read MoreEE fined £1m for failings on customer complaints
03/07/2015 The mobile phone operator EE has been fined £1 million by the regulator Ofcom for the way it has been handling customer complaints. Ofcom has claimed that the UKs largest mobile phone operator did not provide its customers with full information about their right to take their complaints to an independent body. Between 2011 and 2014, EE failed to inform customers in writing about...
Read MoreIs UK sovereign debt at risk?
After the release of today's UK trade data there has been a significant run on the pound and the UK currency saw its sharpest decline for over a week. There are growing concerns regarding the UK housing market, banking sector and today's trade figures have not added much confidence to the situation. Indeed talk of potential default of sovereign debt in Europe and around the world by various credit...
Read MoreJob satisfaction hits an all-time low
A report by the Chartered Institute of Personnel and Development has today highlighted concern in the UK employment market. The survey of 2,000 workers found that job satisfaction has hit an all-time low, especially amongst younger workers who appear to be more concerned about their prospects and their working conditions. It was also revealed that less than 10% of those surveyed have seen an incre...
Read More