The Pound's retreated from $1.53887 high on Friday extended lower on Monday as this Forex pair reached a daily low of $1.52095. The GBP/USD closed yesterday at 1.52471 and has continued to fall in trading sessions this morning, touching on a low of 1.52103.
This morning, Britain will announce a sequence of notable reports including the U.K. Manufacturing PMI (Purchasing Managers' Index), a leading indicator of economic conditions measuring the activity of purchasing managers in the manufacturing sector (today 09:30 GMT), the Bank of England's Mortgage Approvals Report, a leading indicator of housing market activity measuring newly issued home loans, (at 0930GMT), and the U.K. Net Lending to Individuals, a gauge of consumer credit conditions (also at 0930GMT).
The Pound continues to remain under pressure from this week’s election. According to recent polls, the U.K. election is still too close to call; indicating that there is still is chance that the election may result in no party having a majority in parliament.
Without a majority calling the shots, it seems unlikely that the parliament will be able to tackle its sovereign debt problems and its budget deficit. Without guidance and direction, the government may be unable to come up with a viable plan to fight its fiscal issues, if this occurs, then look for the U.K. debt rating to be slashed at some point this year. This action will compound the weakness in the British Pound and drive the currency lower.
