UK budget uncertainty leaves sterling vulnerable against euro, says Rabobank

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Summary · why it matters

Rabobank's Senior FX Strategist Jane Foley warns that uncertainty around the UK budget leaves sterling vulnerable against the euro. The Burnham government's planned flexibility in fiscal rules and higher infrastructure spending could lead to increased gilt supply and tax speculation, weighing on the pound.

Impact on assets 2

Others± Mixed · 2 stocks
💱Euro/US Dollar FX Spot Rate
EURUSD
▲ PositiveMonetaryrelevance

Uncertainty around UK budget and fiscal policy weakens GBP, indirectly supporting EUR/USD as EUR strengthens relative to GBP.

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