020 7898 0500Sterling is struggling under its own weight and that of its neighbours and a busy few days of important announcements are underway.
The UK currency could be in for a still bumpier ride today as markets look to the UK Budget for indications of the health of the UK economy and any light that can be shed on the potential implications of the upcoming EU Referendum during the statement. Sterling was already being buffeted by its major pairing with the euro yesterday, falling back to lows last seen over a year ago following the results of a survey that showed overwhelming sentiment backing a Brexit among those who will turn up to vote. Sterling dropped sharply against both the US dollar and euro as a result; a stark reminder of the impending uncertainty for the UK.
The UK currency remains at the mercy of the fortunes of its US counterpart as investors will also be keeping a keen eye and ear on today’s US economic announcements, by way of the release of US Consumer Inflation Data, which may bring some better news for sterling if these figures are poor. They will also be looking ahead for any key indicators of US economic strength at the Federal Reserve Interest Rate Statement and press conference.
Wednesday sees the release of other key data for the UK in its Employment Report at 9:30am, a historical indicator of the health of the UK labour market, followed by the UK Budget announcement at 12:30pm, offering an economic forecast for the next year focused on economic growth estimates, spending and borrowing, as well as fiscal stimulus and any changes to economic policy.
These key announcements from within the UK itself could positively or negatively affect the strength of sterling, so be prepared for a another volatile day and please call your trader to make sure you are properly informed.
