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
US and Iran signal ceasefire talks; Bitcoin breaks $68,000, expected to continue rebounding in the short term.On April 1, Bitcoin ( BTC) prices continued to rebound, strengthening further
Today’s Market Recap: US and Iran Signal Willingness to End Conflict, Three Major US Stock Indexes Surge, Dollar Ends Five-Day Winning StreakAs the U.S. and Iran signaled a de-escalation of their conflict, market risk appetite recovered significantly, with the three major U.S. stock indices rebounding sharply to record their l
As the U.S. and Iran signaled a de-escalation of their conflict, market risk appetite recovered significantly, with the three major U.S. stock indices rebounding sharply to record their l
Societe Generale’s commodities team has revised its Oil outlook, warning Brent could spike towards $150/bbl in a higher‑for‑longer scenario if the Strait of Hormuz is shut for two months.
AUD/USD halts its five-day losing streak, trading around 0.6860 during the Asian hours on Tuesday. The pair advances as the Australian Dollar (AUD) receives support after the Reserve Bank of Australia released its March Meeting Minutes.
As of March 30, the US Dollar against the Japanese Yen ( USDJPY) continues to fluctuate at high levels near the 160 mark, with the Yen having fallen to a nearly one-year low. Expectations
Related Instrument
