Economists at ING analyze the Pound Sterling (GBP) outlook after Chancellor of the Exchequer Jeremy Hunt delivered the Spring Budget.
Budget has not moved the needle
If a measure of success for Wednesday’s budget was for Chancellor Hunt not to upset the Gilt market, then it was a good budget. Indeed, bond investors seemed to take the news of a higher FY 24/25 Gilt supply remit in their stride.
In the short term, we believe Sterling could do a little better either at the hands of a softer Euro (today) or a softer Dollar (Friday).
0.8525/0.8535 should be the direction of travel for EUR/GBP today.
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