GBP/EUR - After Euro wobbles now the British pound

Great Britain is the next Greece? Unsound public finances have let the pound slide to its lowest level in ten months. Because the situation is not much better than in Greece. And it threatens to further trouble. Britain is the good credit risk.

Since late 2009 the euro to slip came, Europeans from the City of London next to well-meaning advice also must listen to some nasty remark about their currency. But now it is the British pound, which is more and more concern, and occasionally ridicule upon themselves. Beginning of the week the sterling fell below the 1.50 dollar, it was the lowest in ten months. Within five trading days of the British currency has lost about four percent to the greenback. Analysts predict a new phase weak pound.

While the Greek public finances this year were subjected to a real autopsy, Britain needs were pushed into the background. A series of bad news has investors last but caused the instability of London today: "Retail sales, wage and employment data mortgage market development - all this was weak in," said Chris Turner, analyst at ING. But inflation was higher than predicted: A negative combination that suggests close to stagflation as a healthy economic recovery.

GBP/USD Exchange
GBP/USD Exchange Rate
GBP/USD Graph Chart
GBP/USD Performance
GBP/USD Appreciation
GBP/USD Depreciation
GBP/USD Investment Calculator
GBP/USD Metal Prices

The Canadian research firm BCA comes in an investigation concluded that England is behind Iceland, Greece, Portugal, Ireland, Spain and Italy are the most financially vulnerable country. The British state budget is in a similar condition as the desolate Greek. The European Commission estimates the budget gap to 12.9 percent of economic output, compared with a Greek deficit of just over twelve percent.

Also, the total debt of the Kingdom is not conducive to calm the minds of investors. Already this year the island nation should be 80 percent of gross domestic product in the Cretaceous. So oppressive the interest and repayment burden has never been since the end of World War II. Here, the loans and companies are not even counted. Extrapolating this with one, the Brits are at 460 percent of its economic power in the Cretaceous. The ratio is only slightly behind the record level of 485 percent, bringing it to the debt champions Japan.