At around 12:30pm today, Chancellor Rishi Sunak will announce the UK 2021 budget which will be closely tracked by pound traders for signs of what lies ahead for the economy throughout the course of the year. Rumours have already started to circulate as to what will be said by the Chancellor. The headline currently on most major news outlets is for the furlough scheme to be extended until September, with support for self employed workers set to be extended also. The BBC is reporting “Mr Sunak will outline a three-point plan to support people through the coming months, rebuild the economy and “fix” the public finances in the wake of the pandemic”. Any news that the Government will continue to provide generous support to the economy should be seen as positive for the pound, encouraging economic growth in the year which should be the wake of the pandemic.
Throughout the course of the afternoon we will also see data releases from the US. After the better than expected data at the tail end of last week and the start of this week, GBPUSD has failed to break back through the 1.40 mark after falling below. Should the services PMI data come out stronger than expected, GBPUSD could see further weakness throughout the end of the day.
Have a great day.
Jack Nicholls, Relationship Manager.
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