Skip to Content
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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
GBP Retains Early Gains as UK Annual Deficit Falls

GBP Retains Early Gains as UK Annual Deficit Falls

Nick Cawley, Senior Strategist

Talking Points

- UK annual borrowing falls but rises in March

- GBP remains bid but traders now look ahead to GDP data on Friday.

- 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.

Public sector net borrowing (ex public sector banks) fell by GBP20.0bn to GBP52.0bn in the financial year ending March 2017, compared with the financial year ending March 2016, a touch above estimates of GBP51.7bn. This is the lowest net borrowing since the financial year ending March 2008, according to data from the Office for National Statistics.

However, public sector net borrowing (ex public sector banks) rose by GBP0.8bn to GBP5.1bn in March 2017, compared with March 2016, the highest March borrowing since 2015.

The public sector net borrowing is the fiscal deficit between UK public sector revenues and expenditure.

GBP continued its recent uplift against the USD before and after the release, and trades within 1 cent of last week’s six-month high of 1.29060. GBP may struggle to break the recent high with the first look of UK 1Q GDP set to be released on Friday. Markets are expecting the economy to have grown by 0.4% in the quarter, compared to 0.7% growth seen in the previous quarter.

UK PM Theresa May will also meet with EU President Jean Claude Juncker and chief Brexit negotiator Michel Barnier in London on Wednesday to begin talks about the UK leaving the European Union.

Chart: GBPUSD 5-Minute Timeframe (April 25, 2017)

Chart by IG

Check out our Free Online Foreign Exchange Trading University here

If you want to know retail traders’ latest views on GBP, check it out here

--- Written by Nick Cawley, Analyst

To contact Nick, email him at

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.