Published: Mon, 20 Apr 2009 13:40:28 +0200

Sterling Slides Following Downbeat Commentary from Lawmakers

(CEP News) - The pound sterling is weaker on Monday following suggestions that the IMF could once again downgrade its global economic forecast, coupled with more downbeat commentary from lawmakers.

In an interview with German newspaper Handelsblatt, IMF Managing Director Dominique Strauss-Kahn said global economic forecasts would be lowered again as the recession continues to take its toll. He also called for swifter action to clean up bank balance sheets.

According to the Financial Times, UK Chancellor Alistair Darling plans to admit that the government may lose as much as £60 billion from financial bailouts.

In an interview with Sky News, UK Prime Minister Gordon Brown said the UK must "invest out of the downturn". Brown added that the country intends to invest more in its technology infrastructure.

According to the UK Observer, outgoing Bank of England Monetary Policy Committee Member David Blanchflower considered resigning due to disagreements with MPC at the beginning of the crisis.

On the equity market front, the Eurostoxx was down 30 points to 1966, the UK FTSE 100 was down 39 points to 4054 and the German DAX was down 119 points to 4558.

All data taken at 7:31 a.m. EDT.

GBP/USD down 2.30 cents to 1.4567

Euro/GBP up 0.76 pence to 0.8892

GBP/CAD down 0.44 cents to 1.7911

By Erik Kevin Franco, efranco@economicnews.ca, edited by Stephen Huebl, shuebl@economicnews.ca