I got caught up in Allistair Darling’s shell game yesterday, focusing on the cut in the VAT and focusing focus in the big tax hikes on the rich. Fortunately, the ever-vigilant Bloomberg News was not fooled.
Risk aversion is easing on the new government TARP programs which is helping the pound but it could under-perform versus its peers in this environment. EUR/GBP trades firmly at 0.8555.