U.K.’s Cameron Sees Eight More Years of Austerity Ahead
(eToro Blog) Britons have at least eight more years of austerity to look forward to according to Prime Minister David Cameron, who said earlier in an interview that the current program which was originally expected to end in 2015, then extended to 2017, will likely by necessity continue through 2020. The government has been steadfast in its resolve to tackle head on the huge budget deficit, despite a deterioration of the U.K.’s economy and through its efforts is likely to save some £110 billion.
The situation is very difficult, and Cameron says that there is no denying that forecasters underestimated how bad it might be. He recalls that the U.K.’s budget deficit had peaked in 2009-2010 to over £156 billion, following tens of billions that was spent to bailout the U.K.’s banks. Now the country is in the midst of one of the worst recessions in several decades, with ordinary Britons suffering as household budgets are squeezed. But Cameron notes that the U.K.’s problems are not exclusive, and points to the economic difficulties in the Eurozone and the U.S., though how the deficits are dealt with is another matter.
The GBP/USD pair is currently trading lower at 1.5645 and is only a few pips away from the day’s low; OpenBook sentiment is slightly bullish, with 53% favoring buying the pair. OpenBook guru eshantha from Sri Lanka closed out a short position in the pair with a 36% profit when it hits its TP at 1.5649. In fact, the guru has several trades hit its TP over the past 24-hours, with profits on those ranging from 2.82% to 49%. Over the past month, the trader has allocated 20.6% of his portfolio to the pair, for a gain of 6.4%. As of this writing, the guru has 1,586 followers and 118 copiers.
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