The pound continues to strengthen against the euro but has weakened against the dollar as US bond yields rise again.
However, sterling is still trading at strong levels after Wednesday’s Spring Budget was mainly welcomed by markets, and the UK continues to be a front runner with vaccinations.
Chancellor Rishi Sunak has defended his Budget after some criticisms over major tax changes. In the Budget, it was announced that a freeze on personal tax allowances would be introduced, however, Mr Sunak insists “people’s current take-home pay won’t be affected”. These changes will mean that as many as 1.3 million people will have to start paying income tax, and more people will fall into the top rate of tax.
Looking at recent economic data releases, new car sales saw their lowest February figures since 1959, whereas the construction industry saw increased activity.
