The pound reovers after the Autumn Statement
Aside from domestically important affairs (income tax, home owners, freze on booze prices etc), there hasn’t been to much to talk about. As expected there were lower forecasts, and they came in lower than the general feeling on the street. That was the main driver of the drop in the pound as we watched how Gilts reacted, and some sector stocks. As mentioned in the preview, GBP would be a follower to other flows, not a leader and now we’re out the otherside, and Hammond hasn’t caused any waves, we’ve see the quid right back where it started at
Now the economists will crunch all the numbers and tell us how good or bad this budget is. We’ll get all those headlines from the press later and overnight as they go to print on the front pages for tomorrow.
Typically, as I type, cable has just broken the highs to 1.3271 as we get more unwinding of possible pre-budget risk pricing. I see nothing here to change the landscape for the pound so I’ll be watching the levels I highlighted in the earlier post. I am still feeling bullish about the pound into December and possible positive Brexit news but I’d still like a proper dip to get into.