The Moodys Investors Service declarations that finances would be deteriorating in Britain brought the pound further down against the yen and the euro.
The pound failed to recover against major currencies after negative domestic statements that the government is taking risks managing wrongly a financial system on the brink of collapse. The euro had consistent gains against the pound with improved confidence reports from Germany and France, making the pound unable to react and creating a perfect bulling trend in this pair during all week favoring the Eurozone currency. The yen also strengthened against the pound, due to its
The statements made about the British economy had a direct impact on the pound sterling, mainly pulling it down against other European currencies. Analysts affirm that it wont be very surprising to see the pound breaking record lows in the next months, if the economy continues to plunge. The United Kingdom is facing, by far, the worst crisis since the Second World War, as growing social issues combined with irresponsible economic policies made to bet against the pound a sure shot for traders in the first quarter.
The EUR/GBP rose vertically from 0.8929 to 0.9047, while the GBP/JPY hit 141.90 falling from 143.27.
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