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20 Sep 2013
Further sterling support as UK budget deficit declines in August
FXstreet.com (London) - Sterling has been supported for further gains after figures released by the UK Office of National Statistics (ONS) showed that the UK budget deficit declined in August.
Public sector net borrowing (PSNB) figures sowed that net borrowing (ex temporary bank support) was GBP13.2 billion compared with GBP14.4 billion in August 2012.
The ONS also reported that tax receipts rose 1.4 percent and spending fell 2.2 percent.
The figures are part of a continued run of strong UK macro data. UK 10-Year gilts currently sit at 2.91 percent, after a small 2 percent rise today on a hangover from falls on the news earlier in the week that the Fed would be continuing full steam ahead with its USD85bn asset purchase programme.
On Wednesday, Bank of England minutes showed that the Monetary Policy Committee (MPC) voted unanimously to keep its quantitative easing programme at GBP375bn, with benchmark interest rates held at a historical low of 0.5 percent.
GBP/USD is currently trading at USD1.6029, trading flat on the day.
Public sector net borrowing (PSNB) figures sowed that net borrowing (ex temporary bank support) was GBP13.2 billion compared with GBP14.4 billion in August 2012.
The ONS also reported that tax receipts rose 1.4 percent and spending fell 2.2 percent.
The figures are part of a continued run of strong UK macro data. UK 10-Year gilts currently sit at 2.91 percent, after a small 2 percent rise today on a hangover from falls on the news earlier in the week that the Fed would be continuing full steam ahead with its USD85bn asset purchase programme.
On Wednesday, Bank of England minutes showed that the Monetary Policy Committee (MPC) voted unanimously to keep its quantitative easing programme at GBP375bn, with benchmark interest rates held at a historical low of 0.5 percent.
GBP/USD is currently trading at USD1.6029, trading flat on the day.