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GBP faces pressure ahead of UK budget – Rabobank
By FXStreet Insights Team
Date Published: 3 Sep 2025 | Date Modified: 3 Sep 2025
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The UK is clearly not the only country facing a difficult fiscal prognosis but, since it also runs a sizeable current account deficit, there is potential for the exchange rate to be particularly sensitive to bad fundamental news, Rabobank's FX analyst Jane Foley reports.
The UK is clearly not the only country facing a difficult fiscal prognosis but, since it also runs a sizeable current account deficit, there is potential for the exchange rate to be particularly sensitive to bad fundamental news, Rabobank's FX analyst Jane Foley reports.
Rabobank sees EUR/GBP grinding higher
"This week the Pound Sterling (GBP) has again demonstrated its reaction function to a jittery gilts market. Yesterday, cable plunged around 1.5% into its lows as the USD picked up a safe haven bid. Headed into what is expected to be a tough Autumn Budget for UK Chancellor Reeves on November 26, we expect GBP to remain on the back foot."
"We continue to expect EUR/GBP to grind higher in the months ahead and see scope for cable to dip to GBP/USD1.33 on a 1 to 3-month view."
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