Monday, 1 November 2010

U.K. Deficit Decreases, Thanks to Spending Cuts

Sterling heads higher against the U.S. dollar
The U.S. dollar is gaining against most major currencies today as confidence in global economic recovery slips a bit. However, the one major currency that is gaining against the U.S. dollar is the sterling.

U.K. Deficit Retreats

David Cameron's government promised to cut spending and lower the deficit, and it appears that just such a scenario is under way. The U.K. deficit is being reduced, and that is providing forex traders with a currency to be confident in.

While deficits in the U.S. and euro zone grow, Britain is showing that it is possible to cut back. The move now means that the risk of a credit rating downgrade has been significantly reduced, and that Britain is likely to maintain its sterling rating.

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