Healey’s first speech – comment on markets’ wait-and-see reaction
Following chancellor Healey’s first speech today, Antonio Ruggiero, FX strategist at Convera, has shared the comment:
“Markets are proving difficult to read after chancellor Healey’s first major speech, with investors simultaneously grappling with another bond selloff as oil edges towards $100 a barrel. Sterling is little changed. Healey stressed his determination to restore the UK’s credibility in international bond markets, reiterating his and PM Burnham’s shared commitment to fiscal discipline.
“Markets may be willing to give him the benefit of the doubt for now, but borrowing costs are already hovering near multi-decade highs, primarily driven by external shocks beyond his control. As the Autumn Budget approaches, the scope to positively surprise markets may be narrowing and, with it, sterling’s case for remaining on a broadly upbeat path.”