The finances of the British public sector suffer their third major setback in 25 years. Kit Juckes, chief currency strategist at Société Généraleexpect the pair GBP/JPY drop towards the 120 level.
“Sentiment regarding the British pound remains as dire as ever, and if positioning picks up on that, the pound will find some support at some point, but there is no shortage of bad news to keep the pressure up.”
“Today’s bad news for the currency comes from public sector debt data. Latest ONS release is grim: PSNB excluding public sector banks was £22bn in November, almost £14bn million more than in the same month last year, and the largest deficit recorded in November. Debt interest payments were also the highest recorded in November”.
“GBP/JPY, which briefly topped 170 this fall, appears to be heading back towards 120, a level that has had magnetic appeal since the financial crisis.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
