British Pound: Budget risks weigh on Sterling – Rabobank
Rabobank’s Senior FX Strategist Jane Foley highlights that the British Pound (GBP) is vulnerable as global bond market pressure focuses on high-debt countries facing elections or budget talks.
British Pound (GBP) faces risks from budget concerns, according to Rabobank's Senior FX Strategist Jane Foley. With a significant portion of UK government bonds (gilts) held by foreign investors, the UK budget approaching on October 28 could weigh on the Sterling. Foreign investors are more sensitive to domestic issues, which could lead to GBP weakness and a higher EUR/GBP.
The proportion of UK gilts owned by foreign investors is relatively high compared to other G10 countries, increasing the prospect of bond market jitters spilling over to the exchange rate. The October 28 UK budget is expected to remain a focal point for GBP markets, with an anticipated downside for the pound.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
