Budget 2018: Sterling falls despite upgrade in GDP growth forecasts

Down 0.19% against US dollar

Sterling fell against major currencies in late-afternoon trading on Monday as Chancellor Philip Hammond delivered his Budget speech.

Hammond revealed the Office for Budget Responsibility (OBR) has increased its projections for GDP growth for 2019 and beyond with expectations of growth increasing 1.6% next year. This is up from March expectations for GDP growth of 1.3% in 2019. Predictions for 2020 and 2021 remained the same at 1.4%. Despite this, sterling was down 0.11% at €1.1239 against the euro having been up prior to the speech, while against the US dollar it off 0.19% to $1.2804. The FTSE 100 was up 1.3% to 7,026 points. On Brexit, Hammond said he was "confident" a deal between the UK and European Union wou...