The upcoming UK budget is “absolutely certain” to lead to a double-dip recession in the region, according to former BOE Board member David Blanchflower. Speaking in an interview with Bloomberg TV this morning, the former central banker said the hole left by the cut would be filled by the private sector, and that this would lead to stress on the UK economy. GBP/USD is up 26 pips at 1.4850 ahead of tomorrow’s highly anticipated announcement. If markets deem the fiscal cuts to be too aggressive, sterling could reverse and sell off on prospects of more pressure on the economy. Likewise, an insufficient amount of cuts could hurt the pair through concerns over the country losing its AAA rating.