Government’s indebtedness data revealed a net indebtedness of the public sector of 10.7 billion GBP in February, says Shaun Osborne, head of Strategy of FX of Scotiabank.
Gilts are weakened by government indebted data
“The budget deficit of the United Kingdom has reached 132.3 billion GBP in the first 11 months of the fiscal year, 20 billion GBP above the forecasts. The data increases the pressure on Foreign Minister Reeves to reduce the expense (and perhaps increase taxes) in the speech of the spring declaration next week. The gilts are low yield, but the GBP has generally followed session so far. ”
“The gentle closure of the cable yesterday (confirming a reversal of an external range) is a clear negative for the pound in the graphics. But the additional losses so far today have not even extended to test the minimum of the range in the middle of the month (1,2910) and the price action during the European trade has been more consolidative (despite the fundamental news negative).
“The weakness should develop a little more with a thrust below 1,2900/10. The resistance is 1,2980.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
