(Mar 8 Wednesday) Sterling fell from the high of 1.2210 to a seven-week low of 1.2140 (-70 pips) against the advances of the firm U.S. dollar and position squaring ahead of the U.K. Finance Minister Philip Hammond annual economic forecast today before the U.K. parliament scheduled at 12:30 GMT. Adding to the decline of the pound was an S&P report saying that the U.K. economy is gradually losing momentum based on data.
Hammond will announce his tax and spending plans for 2017 which some say that the forecast will remain conservative targets to curb spending amid the big fiscal deficit and the Brexit concerns.
The pound also weakened after the S&P report from Senior Economist Boris Glass published that "Softening U.K. credit demand points to an economy that is gradually losing momentum." Glass said that "we are seeing weakening business demand for loans, and a cooling of the consumer spending spree that almost entirely drove GDP growth in 2016."
The market awaits the next economic data from ADP's estimate of the U.S. employment estimate for March which is expected to be +183,000 from +246,000 in February. A higher number may push the pound lower.