Britain to get ready for ‘hard choices’ in UK budget
Daily Currency Update
UK Chancellor Rachel Reeves said this morning, that the country has faced mounting economic challenges since her first budget last year, amid growing speculation over potential tax increases aimed at maintaining fiscal discipline.In a pre-budget speech, Reeves warned that global headwinds - including persistent inflation, higher borrowing costs, and the ongoing threat of trade tariffs - have weighed on investment and slowed growth. “Since that budget, the world has thrown even more challenges our way,” she said, positioning her upcoming fiscal plan as a measured response to a more difficult global environment.
Key Movers
For the first time during the extended U.S. government shutdown, signs of movement toward a resolution emerged on Monday, as senior Senate Republicans and Democrats discussed a potential “off-ramp” to the political deadlock.Now in its 34th day - one of the longest shutdowns in U.S. history - the impasse has disrupted essential federal services, including support programs for low-income households, military pay, and airport operations. The standoff between Congress and President Donald Trump continues to centre on funding for a proposed border wall, though both sides have begun signalling a cautious willingness to compromise after weeks of stalemate.
Expected Ranges
- GBP/USD: 1.3070 - 1.3117 ▼
- GBP/EUR: 1.1337 - 1.1411 ▼
- GBP/AUD: 2.0100 - 2.0112 ▲
- EUR/USD: 1.1505 - 1.1541 ▼