Pound Advances After Spring Statement

The pound climbed against its major rivals in early New York deals on Tuesday, after the Chancellor of the Exchequer Philip Hammond revised up the growth forecasts for this year, while projecting a narrow deficit in order to reduce public debt levels.

In his spring statement, Hammond upgraded growth forecast to 1.5 percent in 2018, up from the 1.4 percent previously expected.

The Office for Budget Responsibility said the government borrowing is expected to be GBP 45.2 billion in the 2017-18 fiscal year, GBP 4.7 billion lower than the projections it made in November.

Hammond said that there was "light at the end of the tunnel" for the U.K. economy. "Another step on the road to rebuilding the public finances decimated by the party opposite."

The pound climbed to a 2-week high of 1.3974 versus the greenback and near a 2-week high of 149.38 against the yen, from its early lows of 1.3875 and 147.77, respectively.

The pound strengthened to 0.8854 against the euro and 0.8854 against the franc, off its early low of 0.8886 and a 4-day low or 1.3149, respectively.

If the pound rises further, it may find resistance around 1.43 versus the greenback, 153.00 against the yen, 0.87 against the euro and 1.34 against the franc.