GBP/USD holding its breath this week as UK budget looms

On Friday as the GBP/USD was approaching the 1.30 handle, an update here noted decent sized selling interest in the Pound just ahead of that level. Well, it seems that selling interest did the trick and the GBP/USD fell back from a session high at 1.2998, to a low at 1.2959, before later closing in the US at 1.2962. On Wednesday, usually at around 12.30pm GMT the UK Chancellor, Rachel Reeves will announce the contents of the budget and as noted many times already, this is surely the most eagerly anticipated UK budget in over a decade. Quite simply, the Pound could sink or swim on this and the potential impact is not to be underestimated. The markets are wary of what might be coming and that concerns the UK bond market as much as it does the stock markets and the currency. Earlier this morning the rebound in the USD/JPY helped to push the GBP/USD below the lows seen on Friday. The Pound fell to 1.2940, but it is lifting off that earlier session low just now, as the USD/JPY comes off the boil. The GBP/USD is currently trading at 1.2957