Corporate foreign exchange news

Published by Mark Smith-HalvorsenThe pound is under further pressure in global forex trading this morning (March 16th) after a leaked report from the European Commission slammed Labour's plans to reduce the public deficit.A copy of the report obtained by Reuters is highly critical of existing commitments to cut the budget and pressures the Treasury to bring the deficit in line with Europe-wide caps of three per cent.The report is likely to be seized upon by Conservative leader David Cameron and George Osborne as they look for a strong platform from which to launch their election campaign."The fiscal strategy in the convergence programme is not sufficiently ambitious and needs to be significantly reinforced. A credible timeframe for restoring public finances to a sustainable position requires additional fiscal tightening," the report warns.Chancellor Alistair Darling will deliver his budget speech next week, but he has suggested that it is unlikely to include a detailed plan to cut the budget.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site