1407 GMT – The March 26 U.K. budget from Treasury chief Rachel Reeves presents a negative event risk for sterling, ING analyst Chris Turner says. “The U.K. fiscal rule of needing to balance the budget on day-to-day spending five years’ ahead and the fact that the 10 billion pounds of fiscal headroom has probably been wiped out means Reeves needs to show real terms spending cuts.” With U.K. government bond yields back at rather high levels, Reeves will need to deliver credible spending cuts or risk a selloff in bonds along with sterling, he says.

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