The GBPUSD Rebounds Following Rishi Sunak Budget Speech

© Reuters.

By Sam Boughedda — The saw a bounce earlier today following U.K. Chancellor Rishi Sunak’s budget speech.

In the upbeat speech, Sunak said the U.K. economy had not been hit as hard as expected by the Covid-19 pandemic while using the positive economic forecast to unveil tax cuts and higher public spending. 

In addition, he also promised multibillion-pound initiatives to assist Prime Minister Boris Johnson in meeting his “levelling up” commitments to voters.

“Employment is up. Investment is growing,” Sunak told MPs. 

“The public finances are stabilizing and wages are rising,” he added.

In a further positive for the U.K. economy, Sunak said the Office for Budget Responsibility (OBR) believes the economy will return to pre-Covid levels at the turn of the year, approximately six months earlier than anticipated. 

After a recent fall in the pound due to Brexit trade worries stemming from the Northern Ireland protocol, the GBPUSD saw a small bounce following the speech.

Earlier in the session, the pair hit a low of 1.3710, putting it firmly in the red for the day. However, it has retraced post-speech and now finds itself sitting above the 1.3750 mark supported by Sunak’s comments, Bank of England rate hike expectations, and a weaker U.S. dollar, although it is still down around 0.06%. 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.