U.K. Budget Risks Could Hit Sterling -- Market Talk
Dow Jones2026/10/05 13:331333 GMT - Sterling could underperform as the October 28 U.K. budget approaches, Morgan Stanley strategists say in a note. There remains ample capacity for investors to add sterling-negative risk premium ahead of the budget, they say. High U.K. interest rates make it difficult to express sterling-negative views against many currencies but investors could bet on sterling falling against the dollar "given an increasingly-consensus market view for a higher dollar and the capacity for sterling to cheapen further as more risk premium is added." Sterling falls 0.2% to $1.3212. (renae.dyer@wsj.com) (END) Dow Jones Newswires October 05, 2026 09:33 ET (13:33 GMT)
1333 GMT - Sterling could underperform as the October 28 U.K. budget approaches, Morgan Stanley strategists say in a note. There remains ample capacity for investors to add sterling-negative risk premium ahead of the budget, they say. High U.K. interest rates make it difficult to express sterling-negative views against many currencies but investors could bet on sterling falling against the dollar "given an increasingly-consensus market view for a higher dollar and the capacity for sterling to cheapen further as more risk premium is added." Sterling falls 0.2% to $1.3212. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
October 05, 2026 09:33 ET (13:33 GMT)
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