Wednesday at 12:30 GMT the UK will be delivering its annual budget.

The Chancellor at this stage is expected to push towards another round of spending to support businesses, jobs and boost the recovery.

The rumour mill has taxes as a maybe, with so much stimulus spending it makes sense that the corporate tax rate could increase to try and recoup a fill the big hole in the deficit.

Speculation on tax is high, with some thinking that corporate tax (current 19% - expected 23%) and capital gains taxes will be increased.

The big Q to consider is whether tax changes and spending will match. The second consideration is if tax changes will be implemented this early into the recovery of the UK economy.

Putting too much pressure on the stimulus packages will stifle the growth of the UK, so my thinking is that Chancellor Sunak knows this and will likely post pone tax rate hikes for in the future.

My preferred Trade is for the EURGBP as opposed to GBPUSD.

Due to the contrast between the UK and the EU in terms of vaccines, stimulus, and general central bank stance in the moment.

EURGBP - Short - Annual Budget

Mar 03 2021

Take Profit +0.47%

Holding time 1d12hr

0.86600

Entry price

0.86190

Take profit price

2

1