The British pound reacted with growth in the first half of the day against the US dollar after the publication of the report, according to which the net borrowings of the UK public sector remained at a fairly low level in the fiscal year ending in March, which coincides with the strategy of the Minister of Finance. Back in the early fiscal year, Philip Hammond gave the fellowship to keep borrowing low, and he fulfilled it.
According to data, for 12 months to March this year, the government’s borrowings amounted to 24.7 billion pounds, which is 17.2 billion pounds less than in the previous financial year. Let me remind you that last year, the UK national debt amounted to 1.8 trillion pounds or 83.1% of GDP.
Economists had expected loans of 22.8 billion pounds. Tax revenues for 12 months increased by 5%, while expenses only by 3%.
As for the technical picture of the GBPUSD pair, the trade continues to be conducted in a narrow side channel with a bearish advantage. After sellers today failed to cope with yesterday’s support level in the area of 1.2915, there is a small upward correction, which now rests on the resistance of 1.2950. Its breakthrough will lead to larger growth of the trading instrument and an update of the maximum of 1.3015.
The European currency continued to decline in pair with the US dollar after the publication of reports, which indicated a decrease in the sentiment of German companies in April this year. Especially the mood worsened among manufacturers.
According to the IFO German Institute, the IFO business sentiment index in April 2019 fell to 99.2 points against the March value of 99.7 points. Economists had expected the index to be 99.9 points in April.
The IFO President noted that the German economy continues to lose momentum, which causes a number of concerns. On the one hand, the export-oriented industry continues to be in a recession, but support is provided by the domestic economy, which is doing quite well.
The index of expectations of companies also fell after a slight increase in March
As for the technical picture of the EURUSD pair, the update of the last day’s minimum keeps the market on the side of the euro sellers, which can lead to the update of the lows in the area of 1.1170 and 1.1120.
The Canadian dollar collapsed today after the Bank of Canada left the one-day interest rate target unchanged at 1.75%, and said that the soft policy of interest rates is still justified. The regulator also noted that it closely monitors household spending, the oil market, and international trade policy.
Serious pressure on the Canadian dollar was formed immediately after the Canadian regulator revised the forecast for GDP growth in 2019 to 1.2% from 1.7%.