For the 24 hours to 23:00 GMT, the GBP rose 0.50% against the USD and closed at 1.3969, after the Spring Budget statement indicated an upgrade to UK’s economic growth forecast for this year.
The UK’s Chancellor of the Exchequer, Philip Hammond, in his first Spring Statement, raised Britain’s growth projections and predicted a fall in government borrowing as well as national debt over the coming years. Hammond indicated that the Office for Budget Responsibility (OBR) has upgraded UK’s economic growth forecast to 1.5% for 2018, from an earlier prediction of 1.4%. However, growth outlook for 2021 and 2022 were revised lower to 1.4% and 1.5%, respectively. Further, the Chancellor stated that British inflation should fall back to the central bank’s 2.0% target over the next 12 months, while forecasting that public spending could increase in 2018’s Autumn Budget.
Separately, the OECD predicted that Britain’s economic growth would expand to 1.3% in 2018, up from 1.2% estimated earlier, amid a strengthening global recovery.
In the Asian session, at GMT0400, the pair is trading at 1.3984, with the GBP trading 0.11% higher against the USD from yesterday’s close.
The pair is expected to find support at 1.3907, and a fall through could take it to the next support level of 1.3831. The pair is expected to find its first resistance at 1.4028, and a rise through could take it to the next resistance level of 1.4073.
With no macroeconomic releases in the UK today, investor sentiment would be determined by global macroeconomic events.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.