The pound is still at strong levels against the euro and the dollar this morning, however it remains below the highs of last week. Today, the Chancellor of the Exchequer, Rishi Sunak, will deliver his Spring Budget, which the markets will be watching closely.
Sunak is tipped to be extending government support schemes, including the furlough scheme, until pandemic restrictions are removed. However, he has also said that there is a need for “tough decisions” and there could be talk of tax rises. If the Chancellor delivers a budget that places emphasis on tax hikes, then this could weigh on the pound.
This morning, PMI data is due to be released for the UK services and manufacturing industries. It is expected to show a softer rate of decline in February than in the previous month.
