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GBP is Significantly Down
Mon, 04/27/2009 - 06:29 — forex pip
Although Wednesday was a very calm trading day on the foreign exchange market for many major currencies, the pound of sterling fell significantly, as a result of reveling of the annual budget statement by the government of the United Kingdom of Great Britain.

Late on Tuesday the pound of sterling fell from $1.4665 to $1.4485. Its now come to its lowest level since the beginning of April. Such changes in the British Pound exchange rates in the mid-week were caused by the announcement, made by Alastair Darling, the Chancellor of the Exchequer of the United Kingdom. He made public information about the future needs for borrowing of the British government. Increased needs to borrow funds, in combination with projections of future economic decline in Great Britain caused such fast slump in the pound rate.

As Alastair Darling informed, Great Britain will borrow totally about 220 billion British pounds during a year, though it was previously planned to borrow only 175 billion.

This amount adds up to the already not small (over 700 billion GBP) debt of the United Kingdom, which will most likely will be to burdening for the country.

The global risk appetites stayed stable, and the rates for the other major currencies remained the same in mid-week.