All eyes are on the UK budget tomorrow. There's not expected to be any stellar news out in what is being described as a "boring" budget. The UK economy is starting to look slightly better than it did last Autumn. The Governments borrowing costs are dropping as is the wholesale price of energy. One of the main changes is expected to be around personal pension pots and contributions which are currently capped at £1.07 million and £40k per annum respectively. This is seen as a driver of early retirement of highly skilled professionals such as doctors and surgeons. The hope is that those experienced people will continue working longer.
This morning saw the UK also see a reduction in unemployment from 3.8% to 3.7%. This appears to have bolstered the recent strength in the Pound versus the Dollar and the Euro.
GBP/USD could also be affected by the US's inflation numbers out at lunch time where analysts are expecting year on year growth of 6% which would show a decrease from the previous month of 6.4%.
Overnight there will be keen eyes on the Chinese retail numbers in the early hours of tomorrow. Analysts are hoping for an annual growth of 3.5%.
Business news centres on the bashing that global banks are taking at the moment. As an example, Barclays shares are down 22% since Thursday as 2 banks in the US have collapsed. This type of thing hasn't happened since the credit crunch, In the US it's needed the President to step in an reassure investors.
Today’s Economic Calendar
US: 12:30 Inflation Numbers
CHN: Wednesday 02:00 Retail Sales
As ever we look forward to keeping you in the loop and look out for our next update.
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