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What is the outlook for GBP, given the UK budget release on Wednesday?

Here is their view, courtesy of eFXdata:

MUFG Research sees a scope for the GBP to extend its gains on the back of [Wednesday’s] UK budget.

“The Budget proved more stimulative than expected for the UK economy which should help to support the recovery more as COVID-restrictions are eased in the coming months,” MUFG notes.

“The OBR also expressed more optimism over the near-term outlook for growth in the UK. They noted that the rapid rollout of effective vaccines offers hope of swifter and more sustained economic recovery, albeit from a more challenging starting point than back in November… The improving UK growth outlook and reduction in downside risks should remain supportive for the pound in the coming months,” MUFG adds.

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