GBP/USD: Pound Dips As UK Polititcs & G20 Take Centre Stage

The pound euro (GBP/EUR) exchange rate is rising for a third straight day heading towards 1.17.

The pound rises after data from the ONS showed that UK government borrowing was lower than expected at £7.77 billion; half what it was a year earlier and well below the £14 billion forecast by analysts.

The lower level of borrowing gives the UK government wiggle room to cut taxes in the March budget should inflation continue to fall towards the 2% Bank of England target.

The euro is falling with eurozone consumer confidence in focus. Consumer confidence is expected to improve to -14.3 up from -15.

Unemployment is at a record low in the region, which helped consumer morale rise to a 22-month high in December.