The commentary on the current account deficit in United Kingdom pulled the Great Britain pound down today, as it added one more reason for the British currency to be less favored by the Forex trading institutions.
The Bank of Englands executive director and chief economist, Charlie Bean, spoke before the Treasury Select Committee today, saying that the size of the current account gap is likely to keep the pound sterling directed downside this year.
Bean also noted that the national currencys depreciation has been already assumed in the projections of the central bank for this year.
Mervyn King, the governor of the Bank of England, said that currently the economy changes from being consumer driven to export driven. In this case pounds depreciation is a normal process that can eventually turn out to be helpful.
GBP/USD fell from 2.0048 to 1.9951 today the sharpest fall since last Wednesday when this currency pair lost more than 200 pips in a single day going down from 2.0084 to 1.9829. GBP/JPY, volatile as always, went down from 200.44 to 197.74, as the yen felt generally bullish today.
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