News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/XS0176LyOg
  • The Japanese Yen remains in focus with strength potential on risk aversion themes to go along with weakness on themes around higher rates. Get your weekly $JPY technical forecast from @JStanleyFX here: https://t.co/l4UICqJzJy https://t.co/dQ2pS0E4fp
  • Google finance-related search interest in 'Evergrande' has almost overtaken 'Covid'. 'Taper' doesn't even register on the scale https://t.co/P6H9sHFVIB
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDJ2wm https://t.co/b9m5ADIqqb
  • Gold remains higher despite positive Evergrande news out of China. Meanwhile, copper bulls are pushing prices upward as the potential for a housing crisis in China ebbs. Get your market update from @FxWestwater here:https://t.co/TK3MNntBdA https://t.co/14UKjR4w6M
  • GBP/USD has flattened overnight after its strongest rally in a month on Thursday. The British currency has been under pressure recently as an energy crisis has caused a number of gas providers to go bankrupt. Get your market update from @HathornSabin here:https://t.co/3D8s2eIVWv https://t.co/JDGNwKYyOn
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sIauS https://t.co/JIT5it2HAt
  • Gold could suffer further near-term losses due to rising U.S. Treasury yields and a weak technical picture for price action. Get your weekly gold forecast from @DColmanFX here: https://t.co/g9QvH3L4It https://t.co/Vz98E0Bl9U
  • Gold has been trending lower after failing to clear resistance in the $1835 area earlier this month. Get your $XAUUSD market update from @DColmanFX here:https://t.co/3hm1g3BHgf https://t.co/MdTQKEBCBx
  • Key break here in the 10-year #Treasury yield as it rises to the highest since late June Took out 1.4230 resistance, and the 100-day SMA Eyes now on the 38.2% Fib extension at 1.4775 Also potential falling resistance from March https://t.co/4cI6l210ui
GBP/USD Holds its Ground Despite Disappointing UK Borrowing Data

GBP/USD Holds its Ground Despite Disappointing UK Borrowing Data

Martin Essex, MSTA, Analyst

Talking Points

- GBP/USD holds steady after UK public borrowing figures even though they miss expectations.

- Public sector net borrowing in November reached £12.2 billion; £11.6 billion was expected.

- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for next week on the DailyFX Webinar Calendar.

GBPUSD was stable on Wednesday despite news that UK public sector net borrowing (PSNB) hit £12.2 billion in November; higher than both the £11.6 billion expected and the £4.3 billion recorded in October, when it benefited from a strong tax take. Excluding the banking sector, PSNB was £12.6 billion, also higher than both the £12.2 billion forecast and the previous £4.8 billion.

On the day Chancellor of the Exchequer Philip Hammond released his Autumn Statement on November 23, the UK’s independent Office for Budget Responsibility revised upwards its borrowing forecasts for the current financial year. The OBR estimated that the public sector will borrow £68.2 billion during the financial year ending March 2017; a reduction of £4.0 billion on the financial year ending March 2016. The improvement in the public finances in November leaves borrowing on track to meet the OBR’s Autumn Statement forecasts for the current fiscal year.

Chart 1: GBPUSD 1-hour Timeframe (December 6 to December 21, 2016)

GBP/USD Holds its Ground Despite Disappointing UK Borrowing Data

The currency pair was trading at 1.2342 half an hour after the figures were released, barely changed from its level immediately before the data. It has fallen from a recent high of 1.2775 on December 6 but, as the New Year approaches, there’s a possibility that it could now rally on profit-taking.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him atmartin.essex@ig.com

Don't trade FX but want to learn more? Read the DailyFX Trading Guides.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES