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Although hard hitting and a bitter pill to swallow for any public sector workers, the budget was reasonably well received by the markets.  In fact, coupled with one member of the MPC voting for an increase in interest rates, sterling actually made gains against the euro pushing up to a high on Thursday evening of 1.22.

Although hard hitting and a bitter pill to swallow for any public sector workers, the budget was reasonably well received by the markets.  In fact, coupled with one member of the MPC voting for an increase in interest rates, sterling actually made gains against the euro pushing up to a high on Thursday evening of 1.22.

Europe and the sovereign debt issue no longer occupy the headlines, but austerity measures have discretely come into force in even the most robust European economies.  The final GDP figures will be released on Wednesday 30th, and these should make for interesting reading, especially when compared with those offered by the OBR earlier in this week. 

Traders and investors are unlikely to gamble on further gains in the pound, and prices of 1.20 in the lead up to a potential flat summer period are increasingly attractive for euro buyers.