GBP/USD unfazed by UK government borrowing increase

The latest UK government borrowing data has just been released. The markets were expecting public sector net borrowing to rise to £15.8 billion in March, up from £10.7 billion in February. The actual figure is £16.4 billion and that is not great news. The central government number is even worse, rising to £21.1 billion from £8.4 billion. The Pound has not really reacted yet to this news. However, it has of course already fallen back since this time yesterday. The slide seen last night saw the GBP/USD drop to 1.3234, almost 200 pips below the high seen yesterday, at 1.3424. As noted here at the time, the Pound had just failed to surpass the high seen last year, at 1.3434 and it seems clear that failure also helped to exaggerate the fall. The rebound from that overnight low has seen the GBP/USD reach 1.3338 earlier. It is off that rebound high now though, currently trading at 1.3306