The Chancellor of the United Kingdom, Rachel Reeves, presents her 30 -minute spring statement at 13cet. The essence of history is how it will probably cut the expenditure of the United Kingdom to fulfill its fiscal rule. Ing FX analysts, Chris Turner, point out that the need to reduce around 15,000 million pounds in expenses through well -being and other departmental expenses has been widely discussed in the press.
GBP/USD seems vulnerable to 1,2860 and possibly 1,2800 today
“Where the danger to the chancellor is in the bond market. If the spending cuts are too late to be credible, or if the government sails too close to the limit with its Giltles issuance plans, we could see a repetition of the mass sale of gilts and pounds of January.”
“For reference, the consensus in the bond market is that the offer of Gilts for fiscal year 25/26 will be around 302,000/304,000 million pounds, with some estimating that it could be as wide as 320,000 million pounds. With the yields of the 10 -year gilts of the United Kingdom already in 3.75% and with a lower performance to the US Treasury bonds. 320,000 million pounds (probably announced around 13: 30cet) would affect the pound sterling. “
“At the same time, it seems that the market is underestimating the relaxation cycle of the Bank of England this year. The market foresees only 40 basic relaxation points, while we see a risk of three cuts more than 25 basic points. The narrative of a more strict fiscal policy and a more lax lax monetary policy should be negative for the sterling pound. GBP/USD seems vulnerable to 1,2860 and possibly 1,2800 today.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
