Budget Provides Little Support to Sterling

The pound fell for a third day, touching a seven-week low against the dollar, before a U.K. budget that analysts say will do little to support the beleaguered currency.

Sterling fell against most of its major peers as it cemented its position as 2017’s worst-performing Group-of-10 currency before the U.K. triggers its exit from the European Union. That process has been further complicated this week after Prime Minister Theresa May lost a second vote in the House of Lords over the conditions to her draft law to start the Brexit process, setting the stage for further tussles before Article 50 can be invoked.

U.K. Chancellor of the Exchequer Philip Hammond presents his first annual budget at 12:30 p.m. London time, when he is expected to say Britain is well placed to weather the challenges of Brexit.

Bloomberg

Sterling Bears to Disregard U.K Budget

Volatility in Hiding or Disappeared

MS

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.