Sterling saw gains yesterday to start the week and this trend has continued this morning, with GBP/EUR almost reaching 1.1400 earlier today.
A break above 1.1400 would be a 2-week high and interestingly the GBP/EUR pair have found resistance the last 3-times this level was tested.
Despite tomorrow’s Spring Budget expected to be far less eventful than the Spring Budget last year, the financial markets are still cautious of the impact the Budget can have on financial markets so it’s worth being aware that the Budget takes place tomorrow.
Back in Autumn of 2022, the fiscally lavish roll out of plans by the Chancellor of the Exchequer Kwasi Kwarteng under a Liz Truss conservative government had a dramatic impact on GBP exchange rates.
The Pound fell to the lowest level against the US Dollar in roughly 35 years at the time, and dropped to an annual low of 1.0800 against the Euro.
Jeremy Hunt is now Chancellor after being appointed by Truss to replace Kwarteng last year, and Rishi Sunak opted to keep him in the role after he brought calm to the markets when appointed. Tomorrow he’s expected to announce plans for 12 new investment zones in the UK’s most budding industries and generally play it safe after the fall out from the last Budget.
Despite these expectations, GBP has strengthened in the lead up to the budget so it will be interesting to see if there’s a response to any unforeseen announcements tomorrow.
Aside from the Spring Budget economic data this week is light. On Friday the Consumer Inflation Expectations are due for release at 9.30am but apart from this economic data is light.
If you would like to discuss an upcoming currency exchange involving the Pound, or any other major currency pairs please feel free to register your interest with me (Joe) on [email protected]
I will be happy to provide quotes and insight into any upcoming data announcements that could impact your plans, and also discuss the numerous contract offers our brokerage provides our clients.