Comments on: Budget day http://blog.currenciesdirect.net/index.php/2009/04/22/budget-day/ Foreign exchange and currency rates blog Thu, 09 Feb 2012 18:18:58 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Jose Ivars http://blog.currenciesdirect.net/index.php/2009/04/22/budget-day/comment-page-1/#comment-35 Jose Ivars Wed, 22 Apr 2009 14:16:51 +0000 http://blog.currenciesdirect.net/?p=323#comment-35 The budget today resembled a trip to the dentist “you know it’s coming, it’s going to hurt and to top it all its going to cost you”. Well no matter how much Chancellor Darling tried to dress up the help the government was going to continue to give to help the unemployed and “families looking to adopt a dolphin” the underlying fact is that government borrowing is going to go through the roof to record highs. As a result in the immediate aftermath Sterling has lost 3 cents against the US$ and 2 cents against the Euro. It now waits to be seen if the global currency markets are prepared to put up with the amount of debt the UK government needs to raise. The only silver lying is the current governments credentials are shoot to pieces and their grasp of the real economic conditions so wide of the mark that the increase in debt really came as no surprise to the markets and you could see sterling recover pretty quickly especially if the equity markets continue to rally. The budget today resembled a trip to the dentist “you know it’s coming, it’s going to hurt and to top it all its going to cost you”. Well no matter how much Chancellor Darling tried to dress up the help the government was going to continue to give to help the unemployed and “families looking to adopt a dolphin” the underlying fact is that government borrowing is going to go through the roof to record highs. As a result in the immediate aftermath Sterling has lost 3 cents against the US$ and 2 cents against the Euro.

It now waits to be seen if the global currency markets are prepared to put up with the amount of debt the UK government needs to raise. The only silver lying is the current governments credentials are shoot to pieces and their grasp of the real economic conditions so wide of the mark that the increase in debt really came as no surprise to the markets and you could see sterling recover pretty quickly especially if the equity markets continue to rally.

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