Sterling Hit as UK Borrowing Blows Past Forecasts

Sterling U.S. dollar weakness deepened to a six-week low after UK public sector borrowing overshot forecasts and gilt yields held near 2008 highs. StoneX Senior Market Analyst Fiona Cincotta walks through the August UK borrowing data, the gilt market reaction and the Bank of England Federal Reserve divergence behind the move in the pound. UK public sector net borrowing came in above both last year's level and market expectations, the second highest August on record, pushing the fiscal year deficit past the Office for Budget Responsibility forecast published in March. Higher spending on public services, benefits and debt interest drove the overshoot even as tax receipts improved, leaving less fiscal headroom before the autumn budget. The U.S. dollar meanwhile held a seven-week high as Federal Reserve officials reinforced expectations for further tightening. Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_fiona_cincotta&utm_content=share 00:00 - Sterling Sinks to Six Week Low 00:31 - U.K. Deficit Blows Past OBR 00:59 - Gilt Yields Near 2008 Highs 01:25 - The Debt Interest Bill Bites 01:54 - Hawkish Fed Lifts the Dollar 02:51 - Where Sellers Take Control Like and subscribe for more financial market insights. #GBPUSD #StoneX #FionaCincotta #Forex --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social