Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

S&P Statement Spell Gloom For Sterling

 The British pound weakened against the dollar yesterday after the S&P said it was maintaining its negative outlook on UK's AAA credit rating. Data released from the UK included a survey by GfK, which showed 58% of U.K. households expect economic conditions to deteriorate further, with nearly two-fifths of the respondents looking to cut back on consumption.

In addition, the final Q1 GDP reading showed economic activity expanded 0.3% from the last three-months of 2009, which was largely in-line with the initial forecast. However, the growth rate slipped 0.2% from the previous year to mark the slowest pace of contraction since the third-quarter of 2008. Comments from the BoE's Posen that a continued UK recovery can not be guaranteed also weighed on the currency