According to @CNBC, global markets are on edge ahead of the UK government’s budget, with traders focused on sterling (GBP), UK gilt yields, and the FTSE 100 for immediate price discovery. According to @CNBC, key market drivers include the Office for Budget Responsibility growth and borrowing forecasts, the size and tenor mix of net gilt issuance, and whether tax or spending changes remain within the fiscal rules. According to @CNBC, these factors will directly shape expectations for the Bank of England’s rate path and term premium, putting both front-end and long-end gilts in the spotlight for rate-vol and curve moves. According to @CNBC, FX desks are preparing for headline risk in GBP/USD and EUR/GBP around the announcement window, especially if borrowing needs or issuance calendars are revised. According to @CNBC, the cross-asset volatility from UK rates and FX is closely watched by digital asset traders for potential spillovers to risk sentiment and crypto liquidity conditions.

According to Omkar Godbole (@godbole17), GBPUSD remains below the 1.34 mark following the recent Federal Reserve meeting and comments from Fed Chair Jerome Powell. The 1.34 level has historically acted as a significant supply zone, particularly noted in September of the previous year. Traders are monitoring this resistance closely for potential short entries, as a failure to break above 1.34 may indicate weakness in GBPUSD. This bearish setup can impact risk sentiment in forex and crypto markets, as dollar strength typically exerts downward pressure on major cryptocurrencies like Bitcoin and Ethereum (Source: Omkar Godbole, Twitter, May 7, 2025).