The pound sterling has been under pressure throughout the morning on Thursday after a poor public finances report and downbeat comments from a Bank of England Monetary Policy Board Member.
UK’s public finances fell £11.8 billion in January, less than calls for a £20.0 billion pullback and reversing a £16.3 billion gain in December.
Public sector net borrowing rose £4.3 billion despite forecasts for a £2.6 billion slide and prior £14.0 billion increase.
The news sparked a 47 pips sell off in GBP/USD to 1.5577.
Also weighing on the pound were comments from Bank of England Board Member Kate Barker in an interview Newsletter on Thursday morning, saying that the country’s economic recovery is “quite hesitant”, and that it is possible for the UK to experience another quarter of contraction.
The comments illustrate the difficulties which the country has been facing in recent months and are consequently adding to the woes of the British currency on Thursday.
The GBP/USD last traded lower by 73 pips at 1.5599 after trading in a range of 1.5575 to 1.5688 today. Short term resistance lies at 1.5816 with support at 1.5560.
Meanwhile, EUR/GBP is up 257 pips at 0.87073 after trading in a range of 0.86644 to 0.87170 today. Short term resistance lies at 0.87459 with support at 0.86580.
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