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Deutsche Bank: Last week's budget in the United Kingdom was bullish signals for the British pound.
George Saravelos from the research department of deutsche bank stated in a report that last week's budget in the United Kingdom was bullish signals for the British pound. The budget is expected to boost economic growth and inflation, leading to higher interest rates in the UK than previously anticipated, making UK government bonds more attractive compared to other assets. Saravelos said, 'Therefore, we still believe that the performance of the British pound is better than many other currencies.' He stated that the market reaction since the budget announcement is a classic response to fiscal stimulus, resulting in a flattening of the yield curve. This is in line with former Prime Minister Liz Truss in 2022