Market insights

UK Tax Rises Expected

Yesterday saw the release of the UK's borrowing position.

The figure was over £2 billion more than expected.

This has led to some economists suggesting tax hikes in the Autumn are more likely.

The report didn't really moved currency markets, but it's a dampener on the UK economy.

In a continuance of topsy turvy reports, the UK retail sales number came in much better than expected this morning.

Analysts had predicted monthly growth of just 0.2%, and the actual figure was 1.2%.

There doesn't appear to be a clear direction the UK is going in at the moment.

As we go into the bank holiday weekend, the main scheduled news has been reported and priced into the currency markets.

However Tuesday leads with Eurozone consumer confidence numbers, so GBP/EUR could be the pairing to watch.

Business news covers the borrowing figures as well as a much needed, predicted drop in energy prices in July.

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Economic calendar

EUR: Tuesday 10:00 Consumer Confidence

As ever we look forward to keeping you in the loop and look out for our next update.

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