Great Britain Pound Gains on Improving Confidence

The Great Britain pound strengthened today after the leaders of the Group of Twenty set the budget-deficit targets, stating that they would focus on the supporting the economic growth and would try to avoid levies on the banks.

The U.S. President Barack Obama said that the G-20’s target to halve the budget deficits by 2013 is in line with the U.S. plans and reflects the economic needs of every nation. The U.K. Prime Minister David Cameron said that the Britain’s austerity budget would support the confidence in the nation’s economy. Many economists think that the agreement, reached on the meeting, is a good sign and it might portend the gradual improvement of the economic situation in the world.

Not everybody became optimistic, though. The inclination of the many nations to the austerity measures, on the opinion of some experts, can bring only ruin to the global economy. The U.K. austerity budget particularly is reason for the strong concern, and the investors bet that the austerity measures would hit heavily the Britain’s economy.

GBP/USD traded near 1.5104 as of 20:53 GMT today after opening at 1.5055. GBP/JPY rose to 134.99 from the opening level of 134.43.

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