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The UK’s  Public Sector Net Borrowing hit 12.9 billion in February, much higher than 5.2 billion that was expected. It saw a surplus in January.

In addition, the meeting minutes released from the recent rate decision showed that two members still want more QE (Posen and Miles) and aren’t settling for the current level of 325 billion pounds.

GBP/USD dropped sharply from 1.5920 to 1.5850 at the time of writing, after dipping even lower.

Earlier in the week, the pair shot up above 1.58 and remained at high ground since then. It’s still far from the low levels of 1.56 1.57 seen last week. For more levels and technical analysis, see the GBP/USD forecast.

George Osborne, the Chancellor of the  Exchequer, will later present the new budget in parliament. This will include growth and inflation forecasts.

As we’ve seen earlier in the week, headline inflation is gradually returning towards the 1-3% range. It dropped once again to 3.4%, as widely expected.

Tomorrow, Britain will release the retail sales figure. See how to trade the retail sales release with GBP/USD.