Fiscal cut call puts pound under pressure

Those using their personal wealth to trade in sterling have seen the value of the currency put under pressure in trading today (March 16th).

The pound fell to $1.4977 against the dollar before recovering slightly to rise to $1.5045 after it emerged the European Commission will call on the UK to make further fiscal cuts, Reuters reports.

A gain of around one per cent was recorded by the euro against its British counterpart, taking it to 90.9p.

Analysts said that the request, which is included in a draft document due to be published this week is unsurprising, with Credit Agricole stating a further fall in sterling is unlikely in the near-term.

’Much of these fiscal woes already appear to be in the price and it will likely require new information to push GBP/USD sustainably below $1.5000 or EUR/GBP above 91.00 pence,’ it said in a research note.

The report has been criticised by chief secretary to the Treasury Liam Byrne, who described its findings as ’wrong’.ADNFCR-2318-ID-19671320-ADNFCR