MARKET OVERVIEW - The pound may weaken.

Francesco Pesole from ING suggested that the British economy could face a weakening of the Pound due to higher corporate taxes, US tariffs, and potential spending cuts in the March 26 budget. According to Pesole, the balance of risks appears "downward" for economic growth and UK interest rates. However, persistent inflation indicates that market pricing for interest rate cuts remains cautious.

According to LSEG, market pricing implies roughly two more rate cuts by the end of the year, while ING anticipates three. ING expresses "some concern" about the UK budget from a Pound perspective. Pesole noted that the impacts on growth and the bond market are contrary to a short-term increase in the Pound. The Pound fell 0.3% to $1.2927, while the Euro rose 0.1% to £0.8375.