GBP edges slightly lower - Scotiabank

Government borrowing data revealed a larger than forecast GBP10.7bn net public sector borrowing in February, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

Gilts weaker on government borrowing data

"The UK's budget deficit has reached GBP132.3bn in the first 11 months of the fiscal year, GBP20bn above forecasts. The data add to pressure on Chancellor Reeves to reduce spending (and perhaps raise taxes) in next week's Spring Statement address. Gilts are underperforming but the GBP has generally tracked the performance of the EUR over the course of the session so far." 

"Cable's soft close yesterday (confirming an outside range day reversal) is a clear negative for the pound on the charts. But additional losses so far today have not even extended to test the midmonth range low (1.2910) and price action through European trade has been more consolidative (despite negative fundamental news)." 

"Weakness should develop a little more on a push under 1.2900/10. Resistance is 1.2980."