United Kingdom GBP

United Kingdom Chancellor Sunak Statement to Parliament

Impact:
Medium

Next Release:

Date:
Period:
What Does It Measure?
The Chancellor's Statement to Parliament typically measures the government's fiscal policies, budgetary priorities, and economic outlook, focusing on taxation, public spending, and economic growth. Key indicators assessed include projected GDP growth, inflation rates, and employment figures, making it a national indicator that reflects the overall economic strategy of the United Kingdom.
Frequency
This event occurs annually, with additional updates as needed, typically coinciding with the budget announcement; it is often a preliminary statement that can influence markets before more detailed information is provided later.
Why Do Traders Care?
Traders closely monitor the Chancellor's Statement as it directly impacts financial markets, influencing expectations for the British pound (GBP), government bonds, and equities. The tone and content of the statement can significantly affect market sentiment and inform monetary policy expectations, thus shaping investment decisions.
What Is It Derived From?
The Chancellor's Statement is derived from a comprehensive economic analysis conducted by the Treasury, utilizing data from various government departments, forecasts of economic performance, and consultations with business and economic experts. It involves detailed calculations regarding fiscal measures and projected economic conditions, often guided by macroeconomic models and statistical methodologies.
Description
The Chancellor's Statement outlines proposed budget allocations and fiscal amendments, including tax changes and spending initiatives. Preliminary reports may provide an early glimpse into fiscal policy shifts, while final data is released later, offering a more accurate representation of government intentions and economic forecasts.
Additional Notes
This statement serves as a leading economic measure because it anticipates future government actions that can influence the economy. Furthermore, it relates to broader economic trends such as consumer confidence, business investment, and the overall health of the UK economy, impacting global perceptions of the UK's economic stability.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for GBP, Bullish for Stocks. Lower than expected: Bearish for GBP, Bearish for Stocks. A dovish tone: Signaling lower interest rates or economic support is usually good for the GBP but bad for Stocks due to concerns over economic growth and profitability.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise