By Michael Vaughan

Sterling has continued its weak run against the US and Canadian Dollar falling 0.5% against the greenback (USD) and falling over 1% against the loonie (CAD).

Sterling has fallen following the pre-budget report this afternoon in which Alistair Darling outlined his plan for reducing the UK’s current deficit and public spending. He was also forced to admit that the recession in the UK had been worse than he predicted last year and said the economy would shrink by 4.75% in 2009 compared with his Budget estimate in April of 3.5%.