In an environment where politics is once again dominating economic data, we saw some positive news for the UK economy yesterday. Official figures showed that Britain’s public sector borrowing fell to its lowest since the 2008 financial crisis. These encouraging borrowing numbers gave sterling a slight boost against the US dollar.
While Brexit and election uncertainty are here to stay for the foreseeable future, this is positive news in the meantime. However, economists have warned that borrowing could increase again with higher inflation and slower growth over the next year.
The pound fell against the euro yesterday as news and rumours surrounding the European Central Bank filtered through to the market.
Meanwhile, following on from Labour’s proposed additional bank holidays, they stated that, if elected, Labour would guarantee the rights of EU residents before Brexit talks began.
The economic docket is quiet for the day ahead, but Brexit and election news will keep the market on its toes. In terms of data, the next big release will be on Friday as the first reading of Q1 GDP is set to hit the wires.