Sterling slides to fresh multi-year low on euro as budget rumours swirl
LONDON, Nov 14 (Reuters) - Sterling fell against the dollar and euro on Friday following new reports that the UK budget later this month will not see expected income tax rises.
The pound dropped 0.3% on the dollar to $1.3151 and weakened more sharply on the euro, with the common currency hitting 88.64 pence, its highest since April 2023. GBP=D3, EURGBP=D3
The Financial Times reported Thursday, citing officials briefed on the decision that British Prime Minister Keir Starmer and finance minister Rachel Reeves have abandoned plans to raise income tax rates, changing course just weeks before a key November 26 budget.
That report comes as Starmer's authority within his own ruling party comes under increasing strain.
"A weakening of fiscal resolve on the back of political uncertainty is not good news for the pound," said Moh Siong Sim, currency strategist at Bank of Singapore.
Related Articles
U.S. September PCE: Likely to Fall Short of Expectations, Bullish for US Stocks
TradingKey - Currently, the market widely anticipates that the core PCE year-on-year growth rate for September will stand at 2.9%, and we expect the upcoming data to be slightly below this consensus forecast.
Palantir: Why PLTR Is So Notorious, Its Stock Performance, and If It's a Buy
TradingKey — Palantir Technologies Inc. (PLTR) stock maintains its investment appeal, with analysts recommending buying on dips as valuation corrections and consistently strong earnings bolster its long-term prospects. While short-term volatility is driven by a cooling AI narrative and adjustments t
The U.S. Dollar Index Is the Key Driver of Gold Prices: Where Are the Dollar and Gold Headed Next?
TradingKey - The strength or weakness of the U.S. Dollar Index stands as the core determinant shaping gold's trajectory.
Alibaba FY2026Q2 Earnings Preview: The Great Pivot from E-Commerce Giant to AI Powerhouse
TradingKey - As Alibaba's earnings approach, one question dominates: Can AI and quick commerce justify sacrificing profits now for future dominance? Preview how the RMB 50 billion quick commerce push, 35.8% AI cloud share, and fierce competition could decide if BABA's 88% rally holds.
U.S. September Nonfarm Payrolls: Two-Scenario Analysis, Will U.S. Stocks Diverge in Short-Term and Medium-to-Long-Term Trends?
TradingKey - This paper conducts an analysis of the U.S. September nonfarm payroll data and the subsequent employment market through two scenario-based assessments, alongside a short-term and medium-to-long-term outlook for U.S. stocks.
