With the United Kingdom Budget 2025 scheduled for tomorrow, the pound sterling (GBP) is under pressure as markets brace for potential tax rises, spending cuts, and downgraded fiscal forecasts. Investors are keenly focused on how the government will address a projected budget shortfall while preserving growth‑friendly signals.
Saqib Iqbal, analyst at Becoin.net, said: “Sterling is on the brink, this Budget could either restore confidence or expose the weak under‑belly of UK finances. Traders are already shifting into hedges ahead of the statement.” For detailed trading levels, scenarios, and strategies specifically for GBP/CHF, Becoin provides a comprehensive GBP/CHF forecast.
Key Budget Risks & Market Drivers
- Tax and spending trade‑offs: Leaked reports suggest extension of income tax threshold freezes, new levies on property, and higher charges on EVs, highlighting a tough balancing act.
- Fiscal credibility under test: With the fiscal hole widening (£20‑30 billion), markets expect clear plans to reassure bond holders and currency traders.
- Sterling positioning: GBP is trading cautiously around USD 1.31, with option markets showing elevated hedging activity.
What to Watch for GBP/CHF
- Upside scenario: A growth‑friendly fiscal plan without surprise tax hikes could strengthen GBP, pushing GBP/CHF higher.
- Downside scenario: A lack of clarity or heavier tax burdens could weaken GBP, prompting flows into safe‑haven CHF and pushing the pair lower.
Strategic Takeaway
Tomorrow’s Budget is a high-impact event for GBP traders. Active monitoring and timing are crucial. The Becoin GBP/CHF forecast offers guidance on key support and resistance levels, helping investors and traders navigate potential volatility.