Sterling should gain immediate support from Wednesday’s budget and Bank of England minutes with an upgrading of growth forecasts and more hawkish inflation tone as the immediate mask of depression continues to lift from the UK economy. Given the overall risk profile, there is very little value in chasing the currency higher as the underlying fundamentals remain precarious to say the least. It is very unlikely that the global outlook will be strong enough to support the UK high-wire act and any gains towards 1.60 should be seen as an opportunity to sell GBP/USD. It is an important 24 hours for the UK economy and, ... (full story)