Does Budget Day come at a cost?

By Matthew Boyle

Today we see the announcement of the UK budget with all eyes watching to see what new taxes may be introduced or areas of increased spending.

Leaked documents yesterday suggested over 5 million public sector workers are set for a salary increase and there would also be an increase to the national living wage from £8.91 to £9.50 an hour.

It was perhaps these very positive and economically stimulating reports that saw GBP>EUR rates push up once again by around half a cent taking it to a new 2021 high and the best rates we have seen in 18 months.

Caution should be taken though as information leaks can often be engineered and as yet we have not had any suggestion of the bad we may see announced today – in a covid-budget and days ahead of the next Bank of England meeting and a day for a key decision about Interest rates.

Whilst historically budgets haven’t affected rates to any real extent under current market conditions and seeing yesterdays rise that this time may be different.

EUR Buyers may want to consider this and take advantage of rates before the announcement later as any negatives here could see these fantastic rates fade away quickly in a delicate a sentiment driven market.

Today we do have some important data releases of note this afternoon with US Durable goods orders and the Bank of Canada Interest rate decision, however the market will largely be watching the Pound and waiting for Rishi Sunak’s announcement later. Whilst we cant affect the budget and its impact upon your pocket we can help you avoid unnecessary price increases to your overseas transfer- so speak to your broker today for some friendly and professional guidance.