USD demand across the board has seen..........>

CABLE: USD demand across the board has seen Gbp/Usd dip back under $1.3900 to

$1.3882. Despite this GBP has largely held the majority of US gains as focus

tomorrow turns to UK Chancellor Hammond who will deliver the Spring statement to

the House of Commons at 1230GMT. Credit Suisse note The Spring Statement is

unlikely to contain any tax and spending policy announcements, which are now

reserved for the autumn budget. But it is likely to reveal an improvement in

public finances worth as much as Gbp9bn in 2017/18. They add, growth forecasts

are also likely to be revised up given the better than expected growth data.

RBC say the much slimmed-down spring fiscal event won't contain any new

policies, so it is set to result in a parliamentary address of just fifteen

minutes or so by the Chancellor. Nevertheless, the OBR's updated economic and

fiscal forecasts will be as detailed as ever and could see the cumulative

government borrowing forecast out to 2022-23 fall by Gbp46bn to Gbp166bn as the

OBR acknowledge a slightly better than expected economic backdrop. Gbp/Usd last

$1.3891.