Tatiana Kashyrskaia
The UK budget showed a record low deficit in February. If to ignore some temporary programs aimed at supporting the country’s banking system, the deficit reached £2.76bn, which is the lowest level since 2008.
For comparison sake, the deficit was equal to £11.76bn in February 2011.
The worsening of the official forecast was attended by George Osborne’s statement that the budget deficit will grow fast within the next few years. He said that the public debt would start shrinking 2 years later – in 2017-2018.
The Bank of England says that the UK economic growth will be a weak one over the next couple of years. NIESR analysts also downgraded their forecasts.
Forex.
Meanwhile, the British Pound continues its mid-term rally against the US Dollar. The chart below, courtesy of , reflects the current state of affairs in the market of GBPUSD. The currency pair is currently retracing after another upswing. However, the expert say the wave level of this retracement move is increasing.
A break above 1.5260 will give way to new highs. However, the current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.5142 (as shown below).
Tatiana Kashyrskaia
