23 Dec 2015
Sterling looking soggy while Osborne faces a challenge to meet his deficit reduction target - Investec
FXStreet (Delhi) – Research Team at Investec, suggests that as the wind down to Christmas continues and liquidity thins out, Sterling looks very soggy and hit a two month low on its trade weighted index yesterday.
Key Quotes
“GBPUSD approached 1.48 yesterday (a fall of 4.5 cents in just over a week), GBPEUR also plummeted with the Euro rallying 6.3% against Sterling since mid-November as traders continue to unwind some of their long Sterling against Euro cross positions. The Pound was hurt by yesterday’s UK Public sector net borrowing figures which showed that the Chancellor of the Exchequer, George Osborne, is facing a challenge to meet his deficit-reduction target this year.”
“In November alone, the deficit was 14.2 billion pounds, up from 12.9 billion pounds a year earlier and higher than economists forecast. The figures leave Osborne needing a marked improvement in the remaining four months of the fiscal year if he’s to meet his target of cutting the deficit to 68.9 billion pounds. January will be a key month, when Britain traditionally records a large surplus as final payments of self-assessed income tax pour in.”
Key Quotes
“GBPUSD approached 1.48 yesterday (a fall of 4.5 cents in just over a week), GBPEUR also plummeted with the Euro rallying 6.3% against Sterling since mid-November as traders continue to unwind some of their long Sterling against Euro cross positions. The Pound was hurt by yesterday’s UK Public sector net borrowing figures which showed that the Chancellor of the Exchequer, George Osborne, is facing a challenge to meet his deficit-reduction target this year.”
“In November alone, the deficit was 14.2 billion pounds, up from 12.9 billion pounds a year earlier and higher than economists forecast. The figures leave Osborne needing a marked improvement in the remaining four months of the fiscal year if he’s to meet his target of cutting the deficit to 68.9 billion pounds. January will be a key month, when Britain traditionally records a large surplus as final payments of self-assessed income tax pour in.”