After a hectic few weeks of central bank decisions, inflation data, and political noise, this week finally looks set to offer a brief pause for breath.
It's been another turbulent week for the Pound, as both monetary and fiscal headlines out of the UK triggered sharp market reactions.
Sterling remained under pressure this morning, as investors positioned themselves ahead of the Bank of England’s policy announcement.
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The Pound's fall has continued from yesterday, after Chancellor Rachel Reeves surprised investors with an unplanned tax announcement. She confirmed that the government will raise income taxes, breaking one of Labour’s key promises from last year’s election.
Sterling fell to its corresponding G10 pairs after Rachel Reeves held an unscheduled announcement confirming that she will raise income taxes, this was one of the main manifesto pledges that the labour government said they would not do if being elected last year.
This morning, we saw a slowdown in growth of housing prices month-on-month for the UK. Previous month saw housing prices increase by 0.5% and for this month it was forecasted to not grow at all at 0%, instead we saw a smaller growth of 0.3%.
The Pound has continued its slide against the Dollar even after The Federal Reserve cut their rates as expected by 25 basis-points.
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