Trending
gbpusd
Source: Newsmaker.id
The British pound weakened to around US$1.335 on Monday (October 26)—the final week of October—after previously reaching a more than one-month high. Investors are growing cautious ahead of the UK’s budget announcement this Wednesday.
Chancellor John Healey plans to provide businesses with more breathing room, potentially including a reduction in electricity levies. This policy is expected to help alleviate cost pressures on the business sector.
The government also intends to increase funding for the National Wealth Fund and the British Business Bank by £20.4 billion through additional borrowing. The National Wealth Fund is set to receive £15.4 billion over five years, while the British Business Bank will receive an additional £5 billion.
However, since this additional borrowing is not expected to begin until the 2028–2029 fiscal year, the immediate impact on the UK bond market is likely to be limited. Investors will nonetheless be closely monitoring the overall effect of the budget on the UK’s fiscal position and the broader economy.
Beyond the budget, the market is also awaiting monetary policy signals from the Bank of England (BoE), as well as upcoming decisions from the Federal Reserve and the European Central Bank (ECB) this week. These developments will serve as key catalysts for the pound, particularly in shaping interest rate expectations and the trajectory of the GBP/USD pair. (srh)
Source: Newsmaker.id