Mark Bolsom, Head of the UK Trading Desk at Travelex Global Business Payments commented, âAs economic recovery gathered pace in May, private sector spending improved, which is why borrowing undershot forecasts. The key thing now is Tuesdayâs first Conservative-Liberal budget â we know Osborne is going to cut borrowing â but that will have a negative knock on effect on revenues.
âThe markets have barely reacted to the news, as the data merely confirms the report from the Office for Budget Responsibility. All eyes also remain firmly on Tuesday's budget, where we expect Osborne to take a tough stance.â
Sterling remains steady in trading this morning â slightly up against the dollar at $1.4863 and slightly down against the euro to 1.1978.