Currency Special: The great fall of Great Britain Pound

Nirmal Bang has come out with its fundamental outlook on Great Britain Pound

The two year old European debt crisis has been the focal point of the financial markets. Developed nations are concerned about the growth prospects and a likely default by European countries may end up in a mild recession by the year end. The ongoing concerns have resulted into a cut down in GDP rate by IMF (International Monetary Fund) for all the developed nations. UK economy is facing the heat of European debt crisis as they have a significant amount of exposure in the European banks. The BOE (Bank of England) is looking forward to support European economies through IMF by providing more money; this indicates that the contagion fear is not only on peripheral countries in Europe but on United Kingdom also. Going further, the fundamentals of UK are likely to deteriorate for the next quarter and we see GBP to test the level of $ 1.54 against the US dollar.

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