The pound will take centre stage today as Chancellor Hunt delivers his first annual budget. There will be an extra level of focus on today’s event given recent history, most notably Chancellor Kwarteng’s & PM Truss’ debacle last September. We don’t need to remind anyone of the impact it had across UK financial assets.
It’s highly likely Hunt steers the course and does not opt for any fresh policies that could be too controversial. However, this does not mean we will not get any market movement across the day. Any developments around corporation tax may stir some volatility. The Spring Statement will begin at 12.30 UK time and should last just over 1 hour. The pound will be on close watch both during and after this announcement.
Also on the agenda today is the most up-to-date read on the health of the US consumer. February retail sales data is due out at 1.30 pm. This follows on from Tuesday’s inflation data which printed as forecast, producing some mild dollar weakness as investors bet this decrease may be enough to push the Fed into pause mode.
Written by Viv Savani. 7:12am, March 15th 2023
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