29.09.202511:39:40UTC+00Sterling Holds Gains after Reeves Speaks

The British pound appreciated to $1.343 after Chancellor Rachel Reeves delivered a speech at the Labour Party conference. Reeves emphasized a commitment to fiscal responsibility, pledging not to deviate from established fiscal rules. She portrayed the investment in the TransPennine Northern Powerhouse Rail as a significant endorsement of Northern England. Furthermore, she outlined Labour's initiatives across education, the NHS, and industry, including a £1.5 billion loan guarantee for Jaguar Land Rover, while also stressing the importance of anti-fraud efforts—recovering £400 million from Covid-related contract fraud. The market reaction was cautious, as investors await more detailed policy announcements to come with the Budget on November 26, where Reeves will present tax and spending strategies. Economic projections suggest the UK's growth will be under 1.5% in 2025, with inflation potentially reaching 4% in September, notably above the Bank of England's target. Additionally, market attention was drawn to the looming risk of a U.S. government shutdown, should Congress not pass a funding bill before the fiscal year concludes, creating downward pressure on the dollar.