01 February 2010

The Pound Tumbles

Speculators are eagerly waiting for the next Bank of England decision - which will happen on Thursday.

On the currency exchange market this morning, the pound took a dive against the US dollar and the Euro. Speculators are worried that the Bank will decide to extend its massive QE (quantitative easing) programme - a fact which would cause large amounts of pound-selling.

In addition, there was a flurry of concern about Britain's political climate: surveys published over the weekend showed that right now, neither of the two main parties (Labour and the Tories) would get a majority win at the general election.

Seems as though neither Gordon nor David can be sure that they will be governing the country come summertime.

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