Pounds in your pocket buy fewer dollars, euros
Nov 1 (Reuters) -In her budget speech on Wednesday, UK finance minister Rachel Reeves said she wanted to put more pounds in people's pockets: Unfortunately for any Brits heading abroad this weekend, those pounds now buy fewer dollars and euros than before she spoke.
The market reaction to her budget will have shocked Reeves, who will be hoping things don't go from bad to worse and that confidence returns to the pound and gilts.
Gilt yields rose for a third day on Friday, although all the yields were below levels reached on Halloween, when GBP/USD sank to an 11-week low of 1.2845 and GBP/EUR slumped to a six-week low of 1.1839.
CFTC data on FX positioning, due at 1930 GMT, will show if the net GBP long shrank further ahead of the UK budget, after falling by a fifth to 74,576 contracts in the fortnight ended Oct. 22.
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(Robert Howard is a Reuters market analyst. The views expressed are his own)
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