FX Moment: Sterling’s Fiscal Hurdle Cleared, Moving On to BOE

The UK’s “low-key fiscal event” budget means a fading fiscal premium, for now, and a focus on sterling’s carry appeal as the first BOE rate rise in the cycle looms. In this episode of the FX Moment podcast, Bloomberg Intelligence chief FX strategist Audrey Childe-Freeman and Ben Ford, FX strategist at Macro Hive in London, discuss sterling’s dynamics following the UK’s Oct. 28 budget and ahead of the Nov. 5 Bank of England policy meeting. The two examine sterling’s euro-proxy virtues during periods of French turmoil, validating BI’s 0.8250 euro-sterling view. Ford also touches on the bullish Swiss-franc view amid renewed risk aversion, consistent with Audrey Childe-Freeman’s case for defensive foreign exchange and euro-Swiss falling toward 0.91-0.90 in 2027.

The FX Moment podcast is part of BI’s FICC Focus series. Listen to this episode on Apple Podcasts and Spotify.