Updated: Jun 27
UK public finances hit record monthly surplus due to strong income tax revenue - Reuters
Over the past week the GBP has actually started to gain some traction over the USD. The strong fundamentals recently released are now promising for the UK. " Britain ran a budget surplus of 14.895 billion pounds in January, the highest since monthly records began in 1993".
This suggests how UK companies, businesses and individuals are paying more tax because they are earning more. Reasons why this is good for the UK economy: increased spending which directly affects GDP, reduced government deficit now they can increase government expenditure if required and potentially an increase in employment as companies deal with more demand.
This can be seen in the GBPUSD price chart as the GBP picks up traction, could we see it reach the likes of 1.32163? More to come.
A disruptive no-deal Brexit may actually put the GBP in a great place to short against the USD and other safer currencies.