UK Budget Doubles the Bank Surcharge and Bank Stocks Rally

The UK budget sent sterling and gilts modestly higher as the government stuck to its borrowing rules and delivered few surprises for markets. Fiona Cincotta, StoneX Senior Market Analyst, explains how sterling, UK gilts, and UK bank stocks reacted, and what now drives GBP/USD. UK bank stocks rallied as the bank surcharge rose to 6%, below the 8% markets had feared, while the OBR raised its 2026 growth forecast and cut 2027 sharply. Energy support for households was extended into winter. Sterling's focus now turns to the Federal Reserve and Bank of England decisions, and to GBP/USD's trendline and moving averages. 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 - UK Budget Calm Lifts Gilts 00:32 - OBR Cuts 2027 Growth Outlook 01:31 - UK Bank Stocks Dodge 8% Hit 01:59 - Energy Aid Lands Before Winter 02:23 - Sterling Turns to Fed and BoE 02:54 - GBP/USD Bears Test Trendline Like and subscribe for more financial market insights. #StoneX #FionaCincotta #UKBudget #GBPUSD --------- 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