U.K. public finances deficit rises slightly above expectations in February

The U.K. public finances saw a slightly above expected deficit in the month of February. The deficit came in at GBP 1.3 billion. This was a deterioration of GBP 2.5 billion compared to last February, owing to lower income and capital gains tax receipts and higher spending.

Along with GBP 2.3 billion worth of revisions to earlier month’s data, cumulative borrowing for this financial year continues to track below the earlier year’s but by less than previous thought, noted Daiwa Capital Market Research.

“Nevertheless, the cumulative deficit for FY17/18 to date of Ł41.7bn means borrowing remains comfortably on track to meet the improved forecast of Ł45.2bn for FY17/18 contained in last week's Spring Statement”, added Daiwa Capital Market Research.

At 21:00 GMT the FxWirePro's Hourly Strength Index of British Pound was bullish at 74.3613, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -44.4987. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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