International Netherlands: Concerns over UK finances drag down the pound.

Jin10 data reported on July 22, Dutch International Group forex strategist Francesco Pesole pointed out in a report that the recent depreciation of the pound against the euro may reflect market concerns about the UK’s fiscal situation, as well as an increased attractiveness of the euro as a reserve currency. Data on Tuesday showed that UK government borrowing in June rose to £20.7 billion, significantly exceeding market expectations, and this deterioration in fiscal conditions may further exacerbate market worries. Pesole stated that while today’s data did not have a significant impact on the pound, it indeed increased the likelihood of the UK government implementing tax increase measures this autumn, which will limit the pound's pump potential.