Sterling traders fear that their budget will be overtaken by the Brexit agreement

Even with a budget and a decision from the central bank this week, Brexit remains a business of sterling traders.

Chancellor of the Exchequer Philip Hammond must submit his annual spending plan – the last before the Brexit deadline is set for March – Monday, while the Bank of England will announce its latest decision monetary policy on Thursday. Nevertheless, badysts are more focused on the likelihood of reaching an agreement on the Brexit and its impact on the pound after the currency last week headed for its worst performance against the dollar for months.

positive news about the likelihood of an agreement on Brexit to be pbaded by Parliament, "said Jane Foley, head of monetary strategy at Rabobank. "The budget should not have a major impact in this context."

Hammond's budget must be the subject of close scrutiny both for his spending plan, after his leader, Prime Minister Theresa May, has promised to end the plan. 39, austerity, and for the Bureau's economic estimates for the fiscal responsibility that goes with it. According to reports, the OBR forecast will give Hammond a windfall at the last minute as tax revenues are higher than estimates.

"Traditionally, budgets are not a key part of the book, all that is needed about tax thresholds. does not attract attention, "said Stuart Bennett, head of Group of 10 currency strategy at Banco Santander SA. "Global forecasts can have an impact on sentiment. So they could be slightly positive, but I would be surprised to see a big move. "

The pound fell 1.9% last week to about 1.2830 USD at the end of European trade. Friday, its biggest five-day drop since August. Investors spent the first part of the week waiting for their leadership contest against May before the currency extended its losses, as European Council President Donald Tusk declared that there was no guarantee that the Irish border would be avoided.

will unveil its latest political decision on November 1 as it seeks to update its growth and inflation forecasts. Although money markets do not see the central bank raising interest rates before 2020, investors will look for guidance on how it considers inflation and Brexit's prospects.

Hawkish's comments from BOE Governor Mark Carney could give the pound a temporary boost, but it is unlikely that bulls will be rebadured on the Brexit front next week. May's cabinet is far from hearing about a way to resume negotiations in five months, until Britain leaves the bloc.

"Perhaps the essential of the budget is to run it, get it voted by Parliament, and then come back to the Brexit talks," Bennett said. "If it stagnates, then the pound will fall."