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.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • The British Pound is under renewed selling pressure this morning after BoE deputy governor for banking and markets said that the central bank is keeping ‘our whole tool set under active review'. Get your $GBPUSD market update from @nickcawley1 here: https://t.co/fY4HewczpL https://t.co/AX1qMeq8ks
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.31% 🇨🇦CAD: 0.19% 🇦🇺AUD: 0.18% 🇨🇭CHF: 0.04% 🇪🇺EUR: -0.05% 🇯🇵JPY: -0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qsrBgSzbb9
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 2.48% France 40: 1.56% FTSE 100: 1.37% US 500: 1.27% Wall Street: 1.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/U88jwizBUy
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.62% Gold: -0.43% Silver: -0.80% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/E0JIHB34kq
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.33%, while traders in US 500 are at opposite extremes with 75.98%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/KPZp80OFL7
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.74% Gold: -0.44% Silver: -0.95% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/fdvrgxmJD4
  • On May 8, Bitcoin surged to a two and a half month-high at $10,071. Get your #Bitcoin technical analysis from @malkudsi here: https://t.co/40pZEa2ARj https://t.co/6fweAKEiP5
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Germany 30: 2.47% France 40: 1.56% FTSE 100: 1.42% US 500: 1.19% Wall Street: 1.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/lusuGg69Py
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.33%, while traders in US 500 are at opposite extremes with 76.39%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/yX00FwBRaN
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.18% 🇨🇦CAD: 0.14% 🇦🇺AUD: 0.07% 🇳🇿NZD: -0.00% 🇨🇭CHF: -0.01% 🇯🇵JPY: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/4auhNzVWYV
GBP/USD Holds its Ground Despite Disappointing UK Borrowing Data

GBP/USD Holds its Ground Despite Disappointing UK Borrowing Data

2016-12-21 11:16:00
Martin Essex, MSTA, Analyst
Share:

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

News & Analysis at your fingertips.