British Pound remains depressed vs USD ahead of UK Autumn Budget and FOMC on Wednesday

The British pound is trading weaker against the US dollar as traders position ahead of two major events: the UK Autumn Budget and the Federal Open Market Committee decision on Wednesday. The sterling weakness reflects a fiscal-risk premium, as markets assess whether the Budget's tax and spending choices will widen the UK deficit and pressure gilt yields. Because the pound's relative strength depends on the rate differential between Bank of England and Federal Reserve policy expectations, any hawkish signal from the FOMC could widen the gap in dollar favor, while a dovish tilt would give sterling some room to recover. Gilts, UK-focused equities and GBP crosses such as GBP/USD and EUR/GBP are most exposed to Budget-related revisions, while USD index moves and US Treasury yields carry the FOMC transmission. The key catalyst to watch is the FOMC statement and press conference language on the rate path, since it will set the dollar's direction for the same session the Budget details emerge.

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