GBP/USD: OBR raises Britain’s GDP growth forecasts in UK’s 2017 Spring Budget


GBPUSD Movement

For the 24 hours to 23:00 GMT, the GBP declined 0.29% against the USD and closed at 1.2167.

Yesterday, UK’s Finance Minister, Philip Hammond, in his Budget speech, stated that Britain’s economy is likely to feel the pain of Brexit more sharply in the coming years despite showing resilience so far. Hammond added that the UK economy will grow faster than previously forecast in 2017, as the Office for Budget Responsibility (OBR) expects economic growth of 2.0% in 2017, up from the 1.4% predicted in November. However, he also mentioned that growth will slow down over the next three years, as he set the course for government spending with Britain preparing to leave the European Union. Moreover, inflation was forecasted to be 2.4% this year and 2.0% in both 2018 and 2019.

In the Asian session, at GMT0400, the pair is trading at 1.2158, with the GBP trading 0.07% lower against the USD from yesterday’s close.

Overnight data indicated that UK’s RICS house price balance remained steady at 24.0 in February, compared to market expectations of a fall to a level of 23.0.

The pair is expected to find support at 1.2127, and a fall through could take it to the next support level of 1.2096. The pair is expected to find its first resistance at 1.22, and a rise through could take it to the next resistance level of 1.2242.

Amid a lack of economic releases in UK today, investors will look forward to global events for further direction.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

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