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Slow U.K. Economic Growth Curbs Pound’s Strength

April 30, 2010 at 21:05 by Vladimir Vyun

Great Britain poundThe Great Britain pound slipped today on the speculation that the attempts to deal with the budget deficit may be hindered by the slow growth of the U.K. economy, which expanding with slower pace than the economies of the U.S. and the Euro-zone.

The U.K. economy expanded by 0.2 percent in the first quarter, while the U.S. economy grew at a 3.2 percent annual rate at the same time. The declining consumer confidence in Britain, which dropped to the three-month low in April, deprives the sterling of its strength. The U.K. budget deficit considered to be the largest among the Group of Seven nations.

The opinion polls showed that the concern for the stalemate in the Parliamentary election remains. Such pessimistic outlook causes worries that the Britain’s troubles will persist.

GBP/USD traded at 1.5277 today as of 19:05 GMT down from the opening rate of 1.5317. EUR/GBP traded at about 0.8711 after it opened at 0.8637. GBP/JPY traded near 143.53.

If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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