The pound continued to be traded at low levels versus the euro and specially the greenback as new evidences that banking conglomerates in the United Kingdom are still facing a complicate situation and will need further stimulus from the government to avoid bankruptcy.
The pound tumbled further down today even if recovered much of its losses later on as one of the biggest banking institutions in the country declared that it will borrow more funds from the state, evidencing the negative situation in which the financial sector in the United Kingdom remains stalled, decreasing attractiveness for the pound, which has been one of the worst performances since the global economic recovery started in the first semester of 2009, as traders could opt for better options in both risk driven sessions and pessimistic days, leaving the pound in a second class of investments. Lloyds Banking Group Plc. and the Royal Bank of Scotland are among the main U.K.’s financial institutions that will require further help from the government to avoid bankruptcy.
Even if better news started to emerge from the United Kingdom, specially coming from the real estate sector, the financial system in England continues to be a significant obstacle for the pound’s outlook, since it hasn’t provided traders with significant improvements that could increase U.K.’s currency attractiveness.
GBP/USD traded at 1.6433 as of 23:39 GMT after bottoming at 1.6265 hours earlier.
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