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Foreign Currency Exchange Specialists

Tuesday, 22 February 2011

UK borrowing falls... but European confidence rises

This morning's UK public borrowing figures showed a surplus of £3.7bn, much better than expected, in a timely boost for the UK economy.

However, much of the surplus is down to January's income tax deadline payments, although discounting these still puts UK borrowing in line to come in under the government's target of £185.5bn for the financial year.

Unfortunately for those of you looking to send funds abroad, particularly in Euros, the strong UK data was followed by rising German consumer confidence, higher Eurozone factory output, and speculation about European interest rate rises. As a result, the Euro has strengthened, making buying Euros more expensive despite the upbeat UK data.

Tomorrow's Bank of England minutes will now be crucial in determining the next direction of sterling's movement.

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