Budget Meeting To Test Sterling Strength
The British Pound will take cues from new spending and tax announcements issued by the UK Treasury at midday, with investors keen to establish if there will be a net boost to spending.
The rule of thumb that a stimulatory budget would be supportive of UK economic growth and would therefore offer support to Pound Sterling valuations. Ahead of the budget, leaks issued by the Treasury show more than five million public sector workers are set for a salary rise next year as an end to the Covid-era freeze on public sector pay is rescinded.
In level terms, EUR/USD starts the European session at the 1.16 threshold, the GBP/EUR pair is currently trading in the lower half of the 1.19 -1.1850 mark, having briefly tested a new yearly high yesterday. Meanwhile, cable (GBP/USD) is trading around the midpoint of the 1.37-1.38 band.
Ahead today, the Budget Day will dominate in the UK whilst across the pond, the main release of note is US Durable Goods orders for September.