The UK public borrowings in March 2012 exceeded the bravest expectations, thus reaching £126B. Nevertheless, George Osborne told that the government hadn’t exceeded the borrowing limit. March’s net borrowings reached £18.2B, which is the highest level since Nov 2010.
According to Dow Jones Newswires, analysts had anticipated a decline down to £16B. However, we should keep in mind the UK government borrowed more during the last financial year amid spending and tax cuts. After cutting hundreds of thousand public jobs, the coalition government reduced the public spending down to the minimal level since 1955. However, the UK government will have to work amid the record-high ratio between the net public debt and the national GDP – 66%. The public borrowing target for 2013 is set at £120B.
Forex.
According to , the British Pound keeps strengthening against the US Dollar. GBPUSD is currently forming wave 5 or А inside the “Hound of the Baskervilles” pattern by Elder/MF. At this point, the currency pair has suspended its rally around the MF pivot 1.6165. A further rally may encounter resistance at 1.6168/70, 1.6237, 1.6281. A break below 1.6075 will indicate the end of the rally.
