The Pound declined against the Euro and the Dollar on Friday as the Pound was hindered by the UK’s public sector net borrowing increased to a record high of £20.3bn in November, this figure was the highest for any month since records began in 1993.
However the Pound was supported on Friday by the release of the BOE’s financial stability report which stated that the UK’s financial system has become “significantly more stable over the past six months”
The Dollar made gains against the Euro and the Pound on Friday the Dollar was boosted by safe haven flows due to Iranian forces entered Iraqi territory on border disputes. Investors believe that the Federal Reserve will raise interest rates from record lows as positive economic data has renewed optimism in the US economic recovery.
The Euro declined against the Dollar while making slight gains against the Pound as euro zone’s banks are due to lose more money as a result of the financial crisis than originally feared, the European Central Bank said Friday. However it was stated that the overall level of risk to the financial system has receded, due to dramatic action by governments and central banks.
Data released 21st December
No significant data