GBP, gilts stabilize after heavy sell-off – BBH
Source Fxstreet
Pound Sterling (GBP) and long-term gilts stabilized after yesterday’s plunge, BBH FX analysts report.
UK sets autumn budget for Nov. 26
"UK Chancellor of the Exchequer Rachel Reeves announced that the autumn budget will take place on 26 November, a month later than the typical timeframe. Investors worry the UK government will prioritize tax hikes over spending cuts to shore up the fiscal position."
"We see room for GBP to edge lower versus EUR. First, the Bank of England (BOE) could step in and purchase gilt to rein-in runaway long-term yields. Second, higher taxes risk deepening the UK’s sluggish growth outlook and add pressure on the BOE to ease more aggressively."
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
While Wall Street may be convinced the Federal Reserve (Fed) is about to slash interest rates, many experts argue the hard economic data says otherwise.
The Dollar is trading with marginal gains on Thursday.
America is throwing billions of dollars and burning through massive energy reserves in an arms race to dominate AI before China gets there first.
U.S. President Donald Trump is set to host a dinner on Thursday with more than two dozen tech leaders.
On Thursday, we’ll get the latest read on the US services sector when the Institute for Supply Management publishes its August Services PMI.
Related Instrument
