Sterling recovers lost ground as UK public finances show surplus

<p>The pound has recovered some ground as the ONS posts fresh public finances data.</p>

The sterling has managed to make headway in forex trading this morning (February 21st), as official figures revealed UK public finances show a January surplus.

According to the Office for National Statistics (ONS), the country's public finances recorded a surplus of £11.4 billion last month, which is £5 billion higher than in the same month last year.

January often records a surplus thanks to the money coming in from tax self-assessment and corporation tax.

UK public sector net borrowing – excluding financial interventions – was £15.4 billion in the final month of last year, which is up from £14.8 billion in December 2011.

Public sector net borrowing – excluding financial interventions – for the financial year to date is now £93.8 billion.

January's figure was better than the markets had anticipated and included a £3.8 billion cash influx from the Bank of England's asset purchase facility fund.

At 10:10 GMT, the pound made gains of 0.6 per cent in trading with the euro to £1 buying €1.153, while it was flat against the dollar at $1.521.

Learn about the euro and forex trading at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.