News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.55%, while traders in Germany 30 are at opposite extremes with 80.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rs6RgWvlsG
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.27% Gold: -0.27% Silver: -0.90% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/XXWvUv4FbP
  • US Indices are all trading in the red today, with Tech and Small Caps both down over 1%. DOW -0.53% SPX -0.71% NDX -1.30% RUT -1.58% $DIA $SPY $QQQ $IWM
  • USD/CAD trades to a fresh monthly low (1.2471) following the failed attempt to push back above the 50-Day SMA (1.2585). Get your $USDCAD market update from @DavidJSong here:https://t.co/H4HSs3F399 https://t.co/XNCeAY4VJS
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 1.01% 🇯🇵JPY: 0.65% 🇨🇭CHF: 0.50% 🇪🇺EUR: 0.41% 🇦🇺AUD: 0.33% 🇨🇦CAD: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/84xpQjIXNy
  • The Cable Come Back $GBPUSD hard charging for that 1.4000 handle - the same that rebuked the advance multiple times in March https://t.co/8LCcOxhGVF
  • $USD now down to the next fibo level, trying to grasp on to the 618 Q2 reversal theme still in play https://t.co/2VG2DW5lX5 https://t.co/vjzCG0gxHk
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: France 40: -0.19% FTSE 100: -0.20% Germany 30: -0.21% Wall Street: -0.40% US 500: -0.58% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/lcRh4V7LPH
  • $Gold pulling back, support potential around prior neckline from the double bottom formation $GC https://t.co/zn5e1byJPx https://t.co/ImAEGmKN4G
  • $EURCAD has strengthened by around 100 pips today, bouncing off support at 1.4950 to rise above the 1.5050 level, hitting its highest level in over a month. $EUR $CAD https://t.co/m5bZkeXmV6
GBP/USD & FTSE 100 React to Latest UK Budget Announcement

GBP/USD & FTSE 100 React to Latest UK Budget Announcement

Justin McQueen, Analyst

GBP/USD, FTSE 100 Price Analysis & News

  • GBP & FTSE 100 See Muted Reaction to Budget Announcement
  • UK Budget Remains Pro-Growth

UK Budget Brief Recap

UK Labour Market: As widely expected, the UK Chancellor confirmed an extension of furlough scheme until the end of September. The Universal Credit Uplift will continue for an additional 6-months.

Business Support Measures: The Chancellor announced a super deduction to reduce tax bills if businesses invest, allowing for firms to reduce their tax bill by 130% of the cost of investment.

Taxes: Corporation tax will increase to 25% from 19% by Spring 2023. However, the UK will not be increasing income tax, national insurance or VAT.

A detailed list is on the DailyFXTeam Twitter Feed

OBR Forecasts

New Projections

  • GDP: 2021 (4%), 2022 (4%), 2023 (1.7%), 2024 (1.6%), 2025 (1.7%)
  • FY Deficit: 2020 (17%), 2021 (10.3%)

Prior Projections

  • GDP: 2021 (5.5%), 2022 (6.6%), 2023 (2.3%), 2024 (1.7%), 2025 (1.8%)
  • FY Deficit: 2020 (19%), 2021 (7.4%)

Overall, this remains a pro growth fiscal announcement with the focus on supporting the economic recovery and a look to spur investment as opposed to reigning the fiscal taps. In turn, this is likely to help undepin the Pound in the medium, which has been among the notable outperformers in 2021 thus far. In terms of the market reaction, it has been very limited given that a significant amount of the speech had been reported in UK press.

GBP/USD, FTSE 100 Chart: Reaction to UK Budget

GBP/USD & FTSE 100 React to Latest UK Budget Announcement

Source: Refinitiv

GBP/USD Mixed
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 0% 0% 0%
Weekly -22% 8% -11%
What does it mean for price action?
Get My Guide

Find out more on trading GBP with our comprehensive guide

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES