Sterling Could Fall if U.K. Budget Disappoints -- Market Talk

1044 GMT - Expectations for a fiscally responsible U.K. budget at 1230 GMT leaves sterling at risk of falling if it fails to deliver, Monex Europe analysts say in a note. "With consensus already supportive for [U.K. government bonds], the asymmetry lies in disappointment: credibility concerns over deferred spending choices could well see sterling downside pressure build, while a disciplined package is largely priced and would offer only modest relief." The Federal Reserve's decision at 1800 GMT is also capable of overriding any budget reaction, keeping sterling's risks "skewed lower" against the dollar into month-end, they say. Sterling falls 0.1% to $1.3292 after hitting a 12-day low of $1.3269 earlier, according to LSEG. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

October 28, 2026 06:44 ET (10:44 GMT)