//
Reuters revealed sterling steadied yesterday (June 21st), despite Chancellor of the Exchequer George Osborne's recent comments that the UK should brace itself for significant cuts and tax increases.
On Monday, Forex trading saw sterling reach a six-week high against the dollar, but this morning's fall was not as dramatic as expected.
Instead, the value of the pound against the dollar was held back because of European equities falling into negative territory, the international news agency stated.
"If the budget manages to keep the ratings agencies away, that should help sterling," commented Kenneth Broux, markets economist at Lloyds Banking Group.
Among some of the expected decisions by Mr Osborne include a rise of VAT to 20 per cent, along with an increase in capital gains tax and the removal of child tax credits for middle-class families.
Posted by Greg Secker
