Sterling’s (pound, GBP) weakened slightly on Wednesday as we await the big data releases from the UK and US over the next 48 hours. On Wednesday the UK Government’s borrowing numbers for November were released and fell to £12.6bn, down £0.6bn from a year ago. While this is a move in the right direction it was far less than expected. Despite the forecast being missed, economists believe that the government is on track to meet its deficit forecast set out in November’s Autumn Statement.
As we enter the second half to the final full week of the year we have a quiet day from the UK calendar ahead of Friday’s final Q3 (July, August, September) GDP reading. The catalysts most likely to cause some price movement are the key economic releases this afternoon.