sterling

Focus in the U.K. will continue to center on any clues on possible measures in the upcoming Nov. 26 budget and their implications for U.K. government bonds and sterling.

The inconsistent performance of sterling, the trade dispute with the U.S., and the impending U.K. budget—which could include tax increases—has done little to encourage customers to buy flight tickets, Hunter adds.

Yields on U.K. government bonds fell and sterling edged lower.

It comes after Wednesday’s lower-than-expected U.K. inflation data that strengthened the case for another Bank of England interest-rate cut by December and weakened sterling.

The currency market is positioned against sterling and any indication of a smaller funding gap combined with a preference for spending cuts in the autumn budget could strengthen sterling, she says.