Lloyds Share Price Looks for Support from Sunak Budget

Summary:

The Lloyds share price recovery is eyeing the previous highs near 50p and a breakout above that level would see further gains.

The Lloyds share price recovery is eyeing the previous highs near 50p and a breakout above that level would see further gains. This Wednesday will see the latest Autumn budget from chancellor Rishi Sunak.

Lloyds, the UK’s largest mortgage lender in the UK, will also publish its earnings on Thursday. Analysts expect that the bank’s earnings will be relatively softer than the release from Barclays. Unlike many of its banking peers, Lloyds does not have a large investment bank and wealth management arm. However, the new CEO was a previous wealth manager at HSBC and may look to steer the company in that direction.

Rishi Sunak, will deliver a budget speech this week and there are hopes that he could support the banking industry with tax cuts. That could be a controversial move but Sunak wants to make them more competitive on a global scale. . In the speech, he is expected to announce some tax cuts for London banks in a bid to make them more competitive. Lloyds could get a boost from the budget and there is also a looming Bank of England rate hike to consider. It’s possible that the bank’s signalling of a hike, alongside last week’s inflation report, will see them hold off in November.

LLOY Price Forecast

The daily chart on Lloyds highlights a range setup from the lows in April and the recent retest in September. The bounce from there is eyeing the highs above 50p and the stock would see further gains if it can find buying support at the previous highs.