UK pound is struggling today, even with the announcement that Britain saw its biggest budget surplus in four years during January. The news is being met with calls for more government spending to stimulate the economy, but George Osborne is holding steady, and insisting that more austerity is needed.
Chancellor of the Exchequer George Osborne is resisting calls to open the government coffers a little more, now that a budget surplus has been seen. His insistence on austerity, some feel, is slowing the economic recovery in Britain. The fight over government spending, and concerns that it might not pick up, are holding the pound down.
Also pressuring the pound against the US dollar is the fact that equities in Europe are still struggling. Even though US stock futures are turning higher, there is still some uncertainty in other equity markets and that is holding the pound back a little.
Euro is higher on the pound on the result of a Greek debt deal finally being done. The eurozone leaders have thrown a lifeline, and the International Monetary Fund is prepared to do the same. The news is providing a boost for the euro against the pound.
At 14:20 GMT GBP/USD is struggling higher at 1.5800, but still lower than the open at 1.5851. EUR/GBP is up to 0.8382 from the open at 0.8355.
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