Pound Falls vs. Euro as UK Economy in Turmoil

The Great Britain pound fell today against the euro as the budget posted an unexpected deficit and the industrial trend survey was negative, adding to the signs that the UK economy is in turmoil. The sterling managed to gain versus the dollar.

The Office for National Statistics reported that the budget was £557 million, while the median estimate promised a surplus of £2.2 billion. The budget had the £2.84 billion surplus at the same period last year. Confederation of British Industry reported that the index for Industrial Order Expectations fell from -6 in July to -21 in August, the lowest level since December. Today’s data added to the previous signs of economic turmoil in Great Britain, eroding the attractiveness of the sterling.

EUR/GBP rose from 0.7856 to 0.7902, the highest settlement since August 8, as of 14:13 GMT today. At the same time, GBP/USD was up from 1.5708 to 1.5771 — the highest since May 22.

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