The Sterling has done better this week with a backdrop of strong austerity measures being sought by the U.K. government. There will be no major economic data today from England, but it will be the sentiment perhaps from the ‘harsh’ Annual Budget Release from Tuesday that continues to hold sway. The U.K. is considering vast cuts to expenditures and raising the VAT to a mark of 20%. These measures are tough and while they may be painful, some investors believe that the distasteful medicine may prove effective while trying to cure the financial stagnation that the U.K. is suffering from. The GBP certainly has been affected by EUR centric sentiment, but it has proven able to trade in a divergent manner on a number of occasions. After making some strides this week to the upward side, traders may feel an inclination to test its range today.
Written by bforex.com