GBP: Reeves avoids major fiscal risks – NOMURA
Source Fxstreet
Chancellor Reeves sidestepped the biggest fiscal dangers, delivering limited near-term tightening while preserving headroom through backloaded tax hikes, NOMURA's FX analyst Dominic Bunning reports.
GBP shorts face near-term squeeze
"Chancellor Reeves avoided the major tail risks that we were worried about. Limited near-term tightening but larger fiscal headroom (via backloaded tax hikes) seems to be amongst the 'least bad' outcomes."
"Scope for GBP shorts – which have been among the most popular G10 FX positions – to retrace."
"GBP is not out of the woods yet. Backloading the tightening (until largely the next election!) still risks credibility and cyclical momentum is soft but we will look for better levels to re-engage with GBP underperformance trades."
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Google accelerates its post-quantum cryptography timeline to 2029 in its latest researchGoogle Quantum AI has released research showing that breaking Bitcoin’s encryption may require significantly fewer quantum resources than previously estimated. This discovery could potentially unlock billions of dollars in funds dormant due to private key losses. While Google’s discovery benefits individuals with no access to their fortunes, as Elon Musk promptly pointed out, it also […]
Google Quantum AI has released research showing that breaking Bitcoin’s encryption may require significantly fewer quantum resources than previously estimated. This discovery could potentially unlock billions of dollars in funds dormant due to private key losses. While Google’s discovery benefits individuals with no access to their fortunes, as Elon Musk promptly pointed out, it also […]
Ripple and Convera are working together to make cross-border payments faster using stablecoins and blockchain.
Silver (XAG/USD) price has bounced roughly 18% from its 2026 low, currently trading above $72. The recovery followed a hidden bullish divergence that began forming in December. Additionally, the lates
The XRP price traded at $1.31 on March 31, sitting directly above the neckline of a head-and-shoulders pattern that carries an 18% measured breakdown target if it fails.The 4-hour chart shows the righ
Markets are already reacting to rising geopolitical risk. Several Polymarket insiders who successfully bet on the start date of the Iran war are now betting heavily on US boots on the ground in Iran.N
Related Instrument
