GBP falls to five-week low against USD
The Great Britain pound dropped today and heavily as he house prices in Britain tumbled, feinforcing the negatibe outlook for the UK economy.
The pound extended losses aginst the U.S. dollar, falling to a five-week low as risk aversion mounted after talks on reducing the U.S. deficit failed and concerns over sovereign debt contagion in the euro zone continued to weigh.
Meanwhile, in the euro zone the spread between 10-years Spanish bond yields and their German counterparts widened as investors remainded jittery despite the elecion of a new Spanish goverment which was expected to push through drastic austerity measures.
As for Forex GBP/USD hit 1.5634 during European afternoon trade, the pair's lowest since October 18th.
The pound was also down against the euro, with EUR/GBP rising 0.47% to hit 0.8598 and GBP/JPY slid from 121.36 to 120.18
