Politics
Pound Rally Fizzles as Burnham Keeps UK Fiscal Plans Unclear
Key Points
Pound Rally Fizzles as Burnham Keeps UK Fiscal Plans Unclear The pound’s rally is at risk from the new UK government’s still unclear fiscal plans as well as the potential for fewer interest-rate hikes eroding the currency’s high-yield appeal. The pound has weakened 0.4% versus a trade-weighted basket this week, on track for its worst stint in a month, after Prime Minister Andy Burnham’s pledge to seek “any flexibility” in fiscal rules brought the spotlight back on government spending.
Pound Rally Fizzles as Burnham Keeps UK Fiscal Plans Unclear
The pound’s rally is at risk from the new UK government’s still unclear fiscal plans as well as the potential for fewer interest-rate hikes eroding the currency’s high-yield appeal.
The pound has weakened 0.4% versus a trade-weighted basket this week, on track for its worst stint in a month, after Prime Minister Andy Burnham’s pledge to seek “any flexibility” in fiscal rules brought the spotlight back on government spending. Very few major policy proposals have emerged during the first days of the new cabinet.