Forex traders observed a fall in the pound today (July 5th) as poor indicators from the UK public services sector reawakened fears of inconsistent economic recovery in the country.
Falling from $1.5170 before the data was announced, the currency settled on the Forex at $1.5160, reveals Reuters.
However, many analysts feel recent measures to cut national debt will shore up stock market trader confidence, with investors betting favourably on British markets in the long term.
The release of US job market statistics on Friday triggered reduced appetite for risk taking among buyers and sellers on both sides of the Atlantic, as the figures raised concerns of economic slowdown in the States.
Single European currency upward trends held strong today as the euro continued to pull away from its 18-month low of 80.67p last week.
Commerzbank analysts commented: "Long term, the positive effects for sterling are clearly going to dominate. Only in case of weak economic data over the coming quarters, fears could take hold that the government really has overdone it," reports the press agency.
