Sterling Rises for 4th Session
The British pound climbed to $1.347 on Wednesday, extending its winning streak to four days, its longest since August.
Gains largely reflect dollar weakness as a US government shutdown, the third under Trump, weighs on sentiment. At home, BoE officials struck differing tones: Catherine Mann warned that sticky inflation is materialising, with firms embedding higher labour costs into prices, while Deputy Governor Sarah Breeden cautioned against leaving rates high for too long. The Bank of England kept interest rates unchanged in September, with markets currently pricing in the next rate cut only in 2026.
On the political front, Chancellor Rachel Reeves is reportedly set to scrap the two-child benefit cap in November’s budget, a move expected to cost £3.5bn annually but cut child poverty significantly. Attention also turns to possible tax rises, with gambling duties speculated. Meanwhile, new data showed UK house prices rose 0.5% in September and 2.2% annually, beating forecasts.
Source: Trading Economics.com
