Big Day Ahead For Sterling

The pound could be in for a bumpy ride today with employment data due out, and also the small matter of a Budget to contend with.

The UK is expected to have lost another 116,000 jobs following February’s 138,400 which were the most since 1971. This is expected to bring the unemployment rate to 6.7%, which would be the highest since October, 1997.

Until we see these numbers peak, further deterioration in the economy will be expected. The UK derives a considerable amount of its growth domestically and mounting job losses will only push out recovery expectations. This could weigh on the pound over the short-term.

Minutes from the last Bank of England policy meeting are also on tap for release, before Chancellor Alistair Darling is expected to unveil soaring public borrowing when he delivers his second Budget later today.

Right, I'm off out to buy some petrol, fags & a crate of scotch.

Alistair Darling delivering his budgie last year.