By: Barbara Zigah
The Pound Sterling trimmed earlier gains versus the U.S. Dollar, following the installment of a new coalition government in the United Kingdom. David Cameron, the leader of the U.K.’s Conservative Party, succeeded Gordon Brown as Prime Minister, and Nick Clegg, leader of the Liberal Democrats, has become the Deputy Prime Minister. Yesterday, the Pound Sterling gained nearly .8% against the greenback, trading at $1.4958. Just last week, the Pound Sterling had struck a 13-month trough against the U.S. currency on a deadlocked Parliamentary vote. Today, as reported at 2:20 p.m. (JST) in Tokyo, the Pound Sterling was trading at $1.4902, down .1% from yesterday. Investors are anxious to see how quickly the new coalition government will move to curtail spending.
The common currency Euro was also lower in Asian trading on continuing investor concerns for the several fiscally troubled Euro-zone nations. Versus the U.S. Dollar, the Euro traded .2% lower at $1.2642, well off Monday’s high trade when it approached $1.3100. Many market players remain skeptical of the successful implementation of the austerity measures required in order to prevent further fiscal degradation. In Greece, the Prime Minister noted that the Greek people needed to make sacrifices. As to whether or not the citizenry of Greece accepts that declaration remains to be seen. Later today, public and private unions will hold a protest march against the austerity measures.