The Pound declined against the Euro and the Dollar as UK Prime minister Gordon Brown added to the view that monetary stimulus should remain in place for several years and British Chamber of Commerce stated that the quantitative easing program might increase by another GBP 25 billion to GBP 200 billion. Also to note the market remained nervous about the prospects for the UK economy ahead of this morning inflation and retail price data.The visible trade deficit fell to the lowest level in over three years, falling to 6.24 billion pounds in August from 6.431 billion in July, the move had more to do with a drop in imports, as exports also fell, indicating the demand remains weak both domestically and abroad.
The Dollar made gains against the Pound while declining against the Euro yesterday as many investors believe the U.S. Federal Reserve will be forced to keep its interest rate low for now due to the country's slow economic recovery. Investors are looking ahead to the third-quarter earnings reports for more clues on the state of the global economy
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