British Pound could benefit from Spring Budget

The British pound could be set to benefit if Wednesday’s Spring Budget is considered both responsible and stimulatory to the economy, say foreign exchange analysts we follow.

Fiscal events such as the budget are traditionally low-risk events for FX markets, but memories of the Liz Truss-Kwasi Kwarteng ‘mini budget’ are still fresh in investors’ minds, and analysis of financial markets reveals the pound and bond market still hold a slight ‘danger’ premium.

“Some premium has been placed into the curve given some residual concerns about the outcome, but this is relatively small,” says Kamal Sharma, an analyst at Bank of America.

Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.

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