The British pound decreases in relation to the USD
The British pound decreased in relation to the United States dollar. And as traders think it will contribute to lowering the levels of rates cut from the Federal Reserve. The British currency decreased by 4% in relation to the USD caused by the belief that the UK’s Central Bank trails the Federal reserve in terms of borrowing-cost reductions. A new report from UK government will provide us with numbers showing the slowdown of the Great Britain economy throughout the 3 months of the year 2008.
According to several experts, the Federal Reserve will confirm next week that the USD has reached its lowest point.
The British pound decreased to the point of $1.9707 and grew up to 79.29 in relation to Euro throughout this morning trades session in London.
According to the International Monetary fund outlooks the Great Britain economy will grow by 1.6 percent throughout the year 2008. This will be the lowest index of economy growth since the last recession of the country’s economy occurred in 1992.
For instance such index as GDP has increased by 2.6 percent throughout the past months of 2008. However this growth turned to be a bit lower than the one for the same period of the previous year.
According to Lehman Brothers Holding Inc. official the general situation concerning the British currency is not positive one. It still remains low in relation to the USD.
