FXstreet.com (Barcelona) - The Pound has ticked lower against its major rivals after a rather neutral budget report where growth and borrowing forecasts have remained little changed from previous estimations and the continuation of economic support measures has been confirmed.
Darling expects UK economy to contract at a 4.75% pace in 2009, a somewhat larger contraction than the 3.5% contraction estimated in April while he affirmed that GDP wil grow in the fourth quarter and will expand at a 1.0% to 1.5% rate in 2010.
Net borrowing will rose to GBP176 billion in 2009 and o GBP176 billion in 2010, to drop to GBP140 billion in 2011 and to GBP117 billion in 2012.
GBP/USD, has risen to 1.6375 session high after the release of GBP budget repport, to pull down below 1.6300 to levels around 1.6285 at the moment of writing.
EUR/GBP decline from 0.9090 session high found support at 0.9000 and the pair has bounced up to levels around 0.9070 after budget data.
GBP/JPY rebound from 142.00 low has been capped at 1.4415, and the Pound has eased after budget report to trade around 143.05 at the moment of writing.