Now the UK circus budget is over I’ll quickly run through the prices.
GBP/USD We saw a quick drop on the back of the projected lower growth figures to 1.5040. this was short lived and we snapped back up. Further gains were cemented with tax concessions in both personal and more importantly business corporation tax. Emphasis was put on the fact that we are one of the lowest CT country’s around. Added to this was the BOE remit update especially the “unconventional measure” line. Cable should remain bid for now as first impressions are that the budget is good. It’s now going to be poured over and picked apart by all and sundry for the next few hours.
EUR/USD is just down from the highs of 1.2970. It seems to be in a phase of shrugging off negative news from Cyprus. Unless there are any major tape bombs, this should stay the same through the session. The squeeze will come tomorrow when the world will be looking for the Cyprus banks to re-open (if nothing is decided today).
USD/JPY Again up towards the highs on a general ‘risk on’ basis. Actually I think it’s more due to a lack of ‘risk off’. OF course this pair will be waiting for the FOMC later. Be aware that there may be some position squaring leading up to the meeting.