Autumn Budget and Brexit Tensions Cause Pound to Fall

The Pound experienced a difficult day on Wednesday even though the Office for Budget Responsibility gave a positive forecast.

The UK’s autumn budget was revealed where the Chancellor announced an extra £150bn in spending although this did come with criticism as it was found that UK households would suffer as a result. The currency also struggled following Brexit tensions after Boris Johnson announced that conditions had been met to trigger article 16. As trading closed, the currency finished at 1.1842 against the Euro and 1.3739 against the US Dollar according to the Foreign Exchange Market.

It was a varied day for the Euro as it climbed during the first part of the day following news that German consumer confidence had risen. However, as the tendency to buy increased as a result of potential price increases in the near future, it meant that the single currency lost many of these gains during the afternoon session. 

It was a volatile day for the US Dollar after the Greenback performed well during the morning session but then lost its gains during the afternoon. The changes came following a shift in market mood as well as a reduction in US durable goods orders even though orders did contract less than experts had expected.

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