Sterling's Steady Path: UK Budget Anticipation and Economic Forecasts

The pound remained stable against the dollar, with investors cautious ahead of the UK's budget announcement. Finance Minister Rachel Reeves seeks to reassure markets on fiscal prudence and no tax hikes. Sterling was at $1.3095, with focus on potential economic impacts and interest rate cuts by the Bank of England.

On Monday, the pound maintained its position against the dollar as investors awaited Britain's upcoming budget announcement with caution.

Finance Minister Rachel Reeves is set to announce the new budget on Wednesday, aiming to convince investors of fiscal responsibility without increasing taxes on working individuals. Sterling steadied at $1.3095, having dipped 0.5% the previous week.

Nick Rees of Monex Europe highlighted the potential risks to the UK economy tied to the budget, focusing on how it might influence the pound, especially with predictions on economic forecasts and market reactions in anticipation of an interest rate cut by the Bank of England.

(With inputs from agencies.)