Pound to euro exchange rate: Sterling STEADY - but could drop after Autumn Budget 2017
THE POUND has held steady as Chancellor Philip Hammond is set to discuss the government plans in the Autumn Budget 2017 later today, which could affect it.
Strategist bemused by pound's performance ahead of Budget 2017
The pound has remained steady against the euro at €1.128 following yesterdays exchange rate of a similar level.
It has steadily been climbing in the past week, after reaching lows of €1.116.
With the Autumn Budget 2017 today at 12:30pm, this could cause the volatile pound to fluctuate.
It could drop if the budget fails to address many issues.
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The Autumn Budget is set to include plans for 300,000 new homes
The Autumn Budget is set to include plans for 300,000 new homes, as young people struggle to get on the housing ladder.
It is due to address younger issues more than before after the high turnout out of 18-25-year-olds voters earlier this year.
The Help to Buy scheme is also thought to include as much as £10bn extra funding to support it.
Student loans will also be frozen in a bid to win them over, as well as raising the annual income in which they can be paid back.
The millennial railcard has also been included, to offer help for people under 30 years old to afford train travel.
Frequent travellers will also rejoice in the review regarding consumer protection in light of the Monarch administration chaos.
National insurance, pension tax relief cuts and fuel duty increase are all rumoured to be addressed as well.
The pound has also been affected by the UK public sector borrowing figures, which rose to £8bn in October, up £5000m from the previous year.
As well as this, the monthly deficit is bigger than previously predicted.
Laura Parsons, currency analyst at TorFX commented: “The GBP/EUR exchange rate is drifting away from the week’s best levels ahead of the Autumn Budget announcement.
“Sterling had climbed above €1.130 thanks to political chaos in Germany and Brexit speculation, but Tuesday’s disappointing UK public borrowing figures undermined the currency’s recent strength.
“If Chancellor Philip Hammond’s budget fails to impress, the pound could slide against the euro before the end of the day.
“An uptick in the Eurozone’s consumer confidence index would also be GBP/EUR negative.”
