Foremost Currency Group

Make the most of your currency

Talk to our friendly team:+44 (0)1442 892060

GBP/USD Fluctuates Ahead of UK Budget

Yesterday’s high: $1.3264

Yesterday’s low: $1.3229

Pound Undermined by Underwhelming Borrowing Data

The Pound was unable to hold its best levels against the US Dollar on Tuesday, as the latest UK public sector net borrowing report fell short of market expectations.

Borrowing was forecast to worsen to £-6.6b in October but instead came in at £-7.46b. Excluding banks the figure came in at £-8b.

The data indicates that there is little leeway in UK government funds.

However, GBP/USD was largely able to hold its ground as the US Dollar also lacked the drive to advance against Sterling. A lack of highly influential US data, as well as US tax reform uncertainties, have left the US Dollar limp.

USD Outlook: UK Budget in Focus

Wednesday will see UK Chancellor Philip Hammond deliver the highly anticipated UK Autumn Budget.

Analysts have speculated that Hammond’s Budget could include some relief for UK households, currently struggling under a pay squeeze caused by surging inflation and low wage growth. If the Budget offers little news in terms of fiscal policy though, the Pound could shed some of its recent gains against the US Dollar.

The ‘Greenback’ could also climb on Wednesday evening if US durable goods, jobless claims or Michigan consumer confidence stats beat expectations.

Key Events

22nd November

UK Autumn Budget

13:30 US Durable Goods Orders

13:30 US Jobless Claims

15:00 US Michigan Consumer Confidence

19:00 Federal Reserve Minutes

23rd November

09:30 UK Growth Rate

09:30 UK Business Investment

24th November

09:30 UK BBA Mortgage Approvals

14:45 US Markit PMIs

If you need to make a USD transfer but don’t have an account with us, click here to get started.

To keep up to date with the US Dollar, visit the USD blog in our Currency News section.

Arron Morris


Senior Currency Broker
T: 01442 892 065

© Copyright 2013 to 2018 | Foremost Currency Group Ltd | All rights reserved