Public borrowing falls but sterling drifts lower

This morning’s UK public borrowing figures were better than expected, but the Pound has failed to gain any ground today. Official figures showed that public sector net borrowing fell to £6.5bn in October, down from £7.7bn a year earlier. Perhaps wary of the Chancellor’s autumn budget statement next week, markets shrugged off the seemingly good news, with the Pound falling against most currencies this morning and making sending overseas payments more expensive. The Euro has also failed to weaken against sterling, despite the rising cost of Spanish debt which shows that the Eurozone debt crisis is far from over.