LONDON, Mar. 18 (MNI) - The release of better than forecast UK borrowing data aided sterling's recovery off extended pullback lows of $1.5249, with the correction able to push to $1.5329. However, the rate struggled to build on the reaction move, slowly slipping back under $1.5300 ahead of the New York open.

STERLING SUMMARY: Opened early Europe at $1.5275, stg0.8950

highs at $1.5324 before settling between $1.5310/20 ahead of the Tokyo fix. Cross yen supply through the fix provided the main weight to take the rate through $1.5305/00 and on to an initial low at $1.5289. The rate recovered to 1.5312 before getting shoved lower again as the rate tracked euro-dollar slippage. Cable dropped to a session low of $1.5271. The dip attracted demand, aided by euro-sterling breaking lower into early Europe (Asia stg0.8943/73) to stg0.8930 on M&A reports of Deutsche Bahn looking to buy part of UK Arriva (+E2bln) highlighted by an FTD report this morning. Cable recovered to $1.5315 before easing back and challenged support at $1.5250 as euro-sterling bounced. The rate edged to $1.5280, dropping to $1.5240 before recovering again to $1.5280 into UK data. Better than forecast borrowing data spiked it above $1.5300, with reserve manager buys taking it on to $1.5329. The rate slipped under $1.5300, meeting bids $1.5280/70.

UK: Press pick-ups in the UK Thursday, * UK PRESS: Nissan's Sunderland site in northeastern England is to manufacture the Leaf, an electric vehicle described by the company as the world's first affordable, mass produced zero-emission car, the company said on Thursday, the FT reports. The decision by Nissan to make Sunderland its third global manufacturing location for electric vehicles will, together with a previously announced lithium-ion battery plant at the site, maintain around 2,250 UK jobs at Nissan and across the supply chain, the paper says. * UK PRESS: UK businessmen want immediate cuts in public spending and believe the Conservatives have better economic policies than Labour, according to an eve-of-Budget survey for The Independent. The ComRes poll of 185 business leaders will increase the pressure on Alistair Darling to announce detailed cuts in next week's Budget, the paper says. Only 28 per cent support the Chancellor's view that immediate cuts would jeopardise economic recovery, while 72 per cent endorse the Tory Opposition's call for cuts to start this year to reduce Britain's stg 178bn public deficit.

UK: Data released in the UK Thursday, * BOE DATA: Loan Survey: Mortgage Approvals Fall In Feb - Feb Mortgage approvals 48,000 Vs 49,000 Jan - Feb M4 Up 0.2% m/m; Up 3.6% y/y - Feb Mortgage Approvals Lowest Since May 2009 - Feb M4 Lending Down 0.2% m/m: up 4.4% y/y - Feb Net M4 Lending -stg5.3bn vs stg0.8bn Jan - Feb Gross Mortgage lending stg10.1bn v stg8.9bn Jan - Feb Remortgaging stg3.4bn vs stg3.2bn Jan - Jan Net Lending to Business -6.9% 3m Annualised - Jan Net Monthly Lending to UK Business -stg6.5bn - Mortgage approvals declined for the third consecutive month in February, following a sharp fall in January, to hit their lowest level since May 2009, according to Bank of England data. * Feb PSNB Stg12.361bn vs Stg0.043bn in Feb 09; median Stg13.4bn - Feb PSNCR Stg7.303bn vs Stg4.681bn in Feb 09; median Stg11bn - Feb current budget -Stg6.02bn vs -Stg2.5bn in Feb 09 - Public Sector Net Borrowing hit a record high in February but improving tax receipts should help the Chancellor meet his forecast for the current financial year. Public Sector Net Borrowing stood at Stg12.361 billion in February, up from Stg8.766 billion in February 2009. This was the highest level for a February on record, but below the median forecast of Stg13.4 billion. Revisions to earlier data also mean borrowing in previous months was revised down. From April 2009 to January 2010 revisions reduced net borrowing by Stg2.9 bln and the current budget by Stg2 bln. Tax receipts were up 3.6% y/y the highest since Apr08 possibly suggesting economic recovery is taking hold although there was also a boost from the higher VAT rate in Jan. * CML UK Feb gross mortgage loans stg9.20bn vs Jan stg8.68bn * UK CBI Monthly Trends March total order -37 vs -36 in Feb - UK CBI March Output Volume +5 vs +7 - UK CBI March average prices +17 vs Feb +8 - UK manufacturing price balances surged in March, although order books deteriorated slightly the CBI's latest industrial trends survey reveals. The average prices balance rose to 17 in March from 8 in February, hitting its highest level since September 2008. Total order books, however, fell to -37 from -36 in February despite further improvement in export order books. The export order book balance rose to -18 in March from February's -23, hitting its highest level since August 2008.

- John Webb London bureau (44 207) 634 1628 jwebb@marketnews.com

Rates in London Trading TIME EURO-USD USD-YEN CABLE EURO-YEN EURO-STG 0600 GMT 1.3672 90.13 1.5275 123.22 0.8950 0700 GMT 1.3682 90.16 1.5302 123.35 0.8941 0800 GMT 1.3652 90.05 1.5252 122.93 0.8950 0900 GMT 1.3670 90.05 1.5272 123.09 0.8951 1000 GMT 1.3688 90.12 1.5304 123.35 0.8944 1100 GMT 1.3685 90.18 1.5287 123.41 0.8952