Sterling soars but data offers little economic reprieve

Date: March 18, 2010

Sterling soared this morning after Public Sector Finance Data came in much better than expected. Borrowing rose to a fresh new high of £12.4 billion last month, although was well below the £14.75 billion expected by the markets.

Mark Bolsom, Head of the UK Trading Desk at Travelex, the world’s largest non-bank FX Payments Specialist, said, “Sterling is rising as the markets latch onto the fact that the data is better than forecast. Other than that, there seems to be little economic reprieve – in fact, the data is really quite gloomy.

“Lending to businesses fell in January at it’s fastest annual rate since records began, money supply grew 0.2% , it’s slowest annual rate in a decade, and overall government borrowing hit a record-high.”

Bolsom comments, “In particular, the marginal growth of money supply is a real cause for concern, confirming that the Bank of England’s quantitative easing programme is failing to have any tangible or positive effects for UK consumers and businesses.”

Against the pound, the euro was down 0.12% to 1.1193, and 0.09% against the dollar, to $1.5314.

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Jessica Buttress
Head of PR for Travelex Global Business Payments UK
0208 415 4204
077954 497129
Jessica.buttress@travelex.com

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About Travelex:
Founded in 1976, Travelex is the world’s largest non-bank foreign exchange and payments specialist; with operations across four continents and 6,000 employees worldwide.

Travelex holds key positions in its three main areas of activity: Global Business Payments (TGBP, which includes Travelex Personal Payments), Currency Services and Card and Mobile Payments. Every year, more than 35,000 corporate clients and 30 million customers trust Travelex to manage their foreign exchange requirements.

Recently recognised by TowerGroup research as Industry Leader for payments innovation for SMEs, Travelex currently handles international payments worth £40 billion annually for over 750 large corporate and financial institutions.

Visit www.travelexbusiness.com/uk for more information or email the press office at jessica.buttress@travelex.com