British Pound: Fiscal relief supports recovery versus US Dollar – MUFG

Source Fxstreet

MUFG's Lee Hardman highlights a sharp GBP rebound, with GBP/USD back above 1.3400 as reports suggest Andy Burnham would keep existing United Kingdom (UK) fiscal rules. This apparent fiscal policy u-turn is seen reducing downside risks for Gilts and the Pound, though weaker UK labour data tempers expectations for further Bank of England (BoE) tightening in the near term.

Fiscal reassurance offsets weak labour data

"The pound has staged a strong rebound over the last twenty four hours resulting in cable rising back above the 1.3400-level after hitting a low yesterday at 1.3303."

"The apparent fiscal policy “u-turn” should help to ease downside risks for gilts and the pound in the near-term from heightened political uncertainty in the UK."

"However, the relief rebound for the pound has been dampened this morning by the release of much weaker than expected UK labour market data."

"It is likely that the April figures overstate the underlying scale of labour market weakness, although the report as a whole is consistent with ongoing slack labour market slack."

"It will put a dampener on near-term market expectations for BoE rate hikes in response to the energy price shock."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Goldman Sachs Reveals $2.3 Billion Crypto Investment, Including Bitcoin and XRPGoldman Sachs disclosed significant crypto exposure in its Q4 2025 13F filing, revealing more than $2.36 billion in digital asset holdings. The filing shows $1.1 billion in Bitcoin, $1.0 billion in Et
Author  Beincrypto
Feb 11, Wed
Goldman Sachs disclosed significant crypto exposure in its Q4 2025 13F filing, revealing more than $2.36 billion in digital asset holdings. The filing shows $1.1 billion in Bitcoin, $1.0 billion in Et
placeholder
What to Expect From NVIDIA Stock Price in April 2026?NVIDIA (NASDAQ: NVDA) stock price trades at $177.64 on the 2-day chart, up 5.31% over the past days but still down 6% year-to-date. April sits at a unique inflection for the stock. The Iran conflict c
Author  Beincrypto
Apr 08, Wed
NVIDIA (NASDAQ: NVDA) stock price trades at $177.64 on the 2-day chart, up 5.31% over the past days but still down 6% year-to-date. April sits at a unique inflection for the stock. The Iran conflict c
placeholder
Elon Musk’s SpaceX to file public IPO prospectus in the next couple of daysSpaceX is getting ready to publish its IPO prospectus within days, putting Elon Musk’s rocket and satellite company on the edge of a stock sale so large that Wall Street has no clean comparison for it. The company filed its IPO papers privately in April with the U.S. Securities and Exchange Commission, and the public...
Author  Cryptopolitan
May 15, Fri
SpaceX is getting ready to publish its IPO prospectus within days, putting Elon Musk’s rocket and satellite company on the edge of a stock sale so large that Wall Street has no clean comparison for it. The company filed its IPO papers privately in April with the U.S. Securities and Exchange Commission, and the public...
placeholder
Japanese Bond Crisis Triggers Global Alarm: Analyst Highlights XRP’s Key RoleThe Japanese bond market is facing strain not seen in decades. A renowned warns of a possible global domino effect that would impact yields, currencies and credit around the world.In that scenario, XR
Author  Beincrypto
12 hours ago
The Japanese bond market is facing strain not seen in decades. A renowned warns of a possible global domino effect that would impact yields, currencies and credit around the world.In that scenario, XR
placeholder
Bitcoin Could Turn Green as Trump Halts Iran Strike on Gulf Allies’ Plea Bitcoin (BTC) climbed back near $77,000 late on May 18 after President Donald Trump said he had halted a scheduled US military strike on Iran at the request of Saudi Arabia, Qatar, and the United Arab
Author  Beincrypto
12 hours ago
Bitcoin (BTC) climbed back near $77,000 late on May 18 after President Donald Trump said he had halted a scheduled US military strike on Iran at the request of Saudi Arabia, Qatar, and the United Arab
Related Instrument
goTop
quote