Miles Eakers, Chief Market Analyst at Centtrip: “Philip Hammond, the Chancellor of the Exchequer, is due to release his Spring Statement this afternoon. The speech will detail the UK’s annual payments after leaving the EU and Hammond has made it clear he does not want to create too many waves, given the delicate state of affairs in Westminster.
“But from the political point of view, this budget is one of the most important since the Brexit referendum. With no majority following the 2017 snap election, Theresa May’s position is precarious. And everyone is asking the same question: ‘Who will replace May?’ A Eurosceptic like Boris Johnson or even Jacob Rees-Mogg would push for hard Brexit.
“Should the economic outlook be more positive, the Pound will strengthen. But this will also give the pro-Brexiteers within the Conservative Party a reason to cheer as they continue to call for a complete divorce from the EU. There are rebels who want to remain within the customs union and whose views are aligned with the Labour Party. The more divided the Tories are, the higher is the likelihood of a Labour victory in the next general election.”