GBP – Annual Budget Release Tmrw Anticipated

The Sterling continued to follow the EUR’s lead and trade better against the USD. The GBP has picked up ground versus the Greenback as risk sentiment has continued rise. The U.K. released a better than expected Prelim Mortgage Approval report on Friday with an outcome of 51k compared to the estimate of 49K. The Public Sector Net Borrowing numbers however were slightly below the forecast coming in with a 16.0 billion result, below the anticipated 18.2 billion. Today will be absent of economic data, but tomorrow the Annual Budget Release is on the schedule and its presentation could cause fireworks within the markets. Tomorrow’s budget numbers could reflect a change in direction considering that a ‘new’ government is in charge. The Sterling has had a good week of trading bouncing off of its lower realms versus the USD. The question for traders going into today’s session is if they will test the upside the GBP has shown recently.

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