Anyone interested in UK assets or pound based pairs need to keep a close watch on the budget statement that will be read today before the House of Commons by the new chancellor of exchequer Phillip Hammond.

When will the speech begin?

The speech will begin at 12:30 GMT and is expected to last about an hour and it would follow an immediate response from the Shadow Chancellor John McDonnell.

What will it include?

It is likely to include a spending review; however it is not mandatory for chancellor include it. It is likely to include an economic review in the aftermath of the Brexit vote. Traditionally, the Autumn Statement featured spending plans and financial forecasts. This time around it is expected to include some forms of stimulatory packages in response to the Brexit vote. It might also include provisions for the negotiating period. Mr. Hammond might also include an estimated cost to the economy over the negotiation period. Unlikely but it might also include government plans to tackle the housing shortages in the UK, especially in London, which has led to very high prices. There are wide speculations that Mr. Hammond would ease from previous chancellor George Osborne’s spending cuts and increase the minimum wages. Another key aspect would be to watch out for the surplus forecast. Chancellor Osborne planned to reach budget surplus by the end of the decade.

Impact:

Impact on UK assets would depend on the exact announcements; nevertheless one can certainly expect high volatility. The financial market would also try to gauge the Bank of England’s (BoE) policy responses after the budget as it was widely known that BoE would act further if needed, only after the autumn statement.