The pound fell against the euro and the dollar yesterday following the Chancellor’s autumn Budget but has since gained back some strength. This initial fall was due to expectations that inflation may not rise as high as first thought, as well as the prospect that the government may not need to issue as much debt as initially predicted.
Also revealed in the Budget was help for low-income families, spending boosts for pubs and highstreets, as well as changes to universal credit and alcohol tax. There was an unexpected cut to the Universal Credit ‘taper rate’, which was cut to 8%.
It’s a light day for data today, but the markets will now be looking ahead to the Bank of England’s monetary policy meeting next week.
