Yesterday morning, UK prime minister, Sir Keir Starmer warned that Labour’s first autumn Budget will be “painful” as he addressed the nation from 10 Downing Street in his first keynote speech.
Chancellor, Rachel Reeves already hinted that her autumn statement will introduce tax rises, saying more needs to be done to fill the government’s shortfall in public finances.
Where the spending cuts will be made will be revealed on October 30, right in time for Halloween should the currency markets be spooked.
Since this time last week, the pound shot up to two-year highs against the US dollar, as did the euro, following comments from Federal Reserve officials that hinted at upcoming rate cuts.
Should you have any upcoming US dollar transactions, contact your account manager today on 020 7898 0541 to lock in today’s rate with a forward contract.
The last month alone has seen the GBP/USD rate increase by over 5%, which could save thousands for overseas property buyers.
For those with transactions in euros, the pound-to-euro rate is largely unchanged on the week and month. But with all this talk of tax rises and spending cuts, there will be plenty of opportunity for the pound to take “fright” and weaken. To discuss strategies to manage your exposure to currency risk, get in touch today at 020 7898 0541.
