Sterling at five-week lows on PM's spending plans
Sterling fell in European trade against dollar for the third straight session to near five-week lows, as PM Boris Johnson announces new spending plans to support the UK economy.
GBP/USD fell 0.3% to 1.2259, after closing down 0.3% yesterday, the second loss in a row, marking five-week lows at 1.2251.
UK PM Johnson said this is the moment Britain applies the Roosevelt theory., including launching massive public spending and infrastructure sending, which supported the US economy during the great depression in the thirties.
However there were concerns about how Johnson's government will pay for these plans, expected to increase debt levels to levels unseen since the financial crisis of 2008.
Added risks include the UK's failure to reach a deal with the EU before the transition period ends on December 31.
Earlier data showed the UK economy shrank by 2.2% in the first quarter of the year, the worst pace since the first quarter of 2009.
| Symbol | Last | Change | Chg.% | ||
|---|---|---|---|---|---|
|
|
|
1.1771
|
-0.0090
|
0.7558%
|
|
|
|
|
1.3751
|
-0.0109
|
0.7875%
|
|
|
|
Tadawul
|
10794.51
|
2.48
|
0.02%
|
|
|
|
|
25.180
|
-0.940
|
3.597%
|
|
|
|
|
72.079
|
-1.721
|
2.332%
|
|
|
|
|
74.15
|
0.37
|
0.50%
|
|
|
|
|
1802.250
|
-0.450
|
0.025%
|
|
