Sterling Under Pressure as UK Budget Looms - Gate Analysis

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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.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
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