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GBP/USD lifts after dust settles on the UK budget and gilt yields rebound

As the budget was playing out the GBP/USD fell below 1.2950, to a low at 1.2943. However, as the dust settles on all the measure announced, the Pound has rebounded. The GBP/USD has not long ago hit a session high at 1.3043. That move came as US yields first dipped and then rebounded. The same sort of inverse price action unfolded in the FTSE 100. The huge National insurance levy on the corporate sector is the key here and it is a little uncertain what exactly that change will ultimately have on UK business. To be honest all this needs a bit more digestion as far as the markets are concerned. Much could depend on just how this impact the corporate sector growth and that is rather uncertain at this stage. The GBP/USD is currently trading at 1.3019 as those UK yields rise again and that probably makes a BOE rate cut next month much less certain than perhaps it was before. 
 

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