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Sterling Under Pressure as UK Budget Looms - Gate Analysis
The United Kingdom isn’t alone in facing fiscal challenges, but its substantial current account deficit makes the pound particularly vulnerable to negative economic news, according to a recent analysis by Gate’s foreign exchange experts.
Gate predicts gradual rise in EUR/GBP
“This week has once again demonstrated the pound’s sensitivity to volatility in the gilt market. Yesterday saw a sharp 1.5% drop in GBP/USD as investors sought refuge in the dollar. With Chancellor Reeves set to unveil what’s expected to be a challenging Autumn Budget on November 26, we anticipate continued pressure on sterling,” noted a senior currency analyst at Gate.
“Our outlook suggests a gradual appreciation of the EUR/GBP pair in the coming months. We also see potential for GBP/USD to test levels around 1.33 within a one to three-month timeframe.”
This information is provided for educational purposes only. Historical performance should not be considered a reliable indicator of future results.