Market optimism rises as tariff-related fears diminish, paving the way for potential economic growth. Meanwhile, the UK braces for a crucial week with the upcoming budget announcement and inflation data release.

Over the weekend, reports indicated that the Trump administration is shifting towards a more selective approach to tariffs, with certain countries potentially receiving exemptions. The overall scope of the tariffs is now expected to be more limited than originally proposed.

• Big Week for the UK: CPI data, the Spring Budget, and retail sales will shape the outlook for GBP. Inflation is expected to slow, while the budget is unlikely to deliver surprises, with the OBR set to downgrade productivity forecasts. This could make for a volatile week for sterling.

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