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The UK Announces Autumn Spending Review

November 27, 2015 4:25 pm Published by

GBP News

The spending plans for the UK economy were revealed this week by Chancellor George Osborne.

The planned £4.4bn cuts to tax credits have been discarded which was the biggest surprise. The government are also expected to borrow £8bn less than forecast as it aims to secure a GBP 10bn budget surplus by 2020.

This caused the GBP to increase in strength this week and the GBP/EUR rate increased to 1.42.

CHART NOVEMBER

EUR

The EUR has continued to weaken against the USD which is good news for the Euro economy. This will help the Eurozone to boost its economy and keep export prices low. The European Central Bank (ECB) are scheduled to meet next week and will be announcing further methods to help strengthen the economy.

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USD

The USD still remains strong against other currencies following the rumours around the US Government increasing rates early next year. The US will soon be releasing reports for the Durable Goods Orders number. This will have a big influence on the currency market and will possibly drive the EUR lower than ever.

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This post was written by Kayleigh Driscoll

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