(30 OCTOBER 2018)DAILY MARKET BRIEF 2:UK budget weakens pound

(30 OCTOBER 2018)DAILY MARKET BRIEF 2:UK budget weakens pound

30 October 2018, 14:04
Jiming Huang
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Yesterday’s UK budget presentation by Chancellor of the Exchequer Philip Hammond took some steam out of sterling. His spending deficit of GBP 15 billion amounts to 1.40% of GDP in 2019, with boosts in healthcare, housing and fuel. The pound was not able to resist to traders’ GBP bearish view, putting it among the biggest losers in today’s trading session. For now, GBP/USD is trading along 1.2780, its lowest since August 2018, and approaching the 1.2760 range short-term.

Brexit worries continue: the hope that a Brexit agreement would be reached with the EU by 29 March 2019 is fading. Sticking issues relating to the Irish border have not progressed since the European Council Meeting on 17–18 October and are not expected to advance before next EU Council meeting on 13–14 December.

By Vincent Mivelaz


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