Finance minister John Healey presented his inaugural Autumn Budget, lowering household energy costs, lifting the bank surcharge by three percentage points to 6%, and committing an extra £10 billion to Ukraine. Gilt yields dipped and bank shares climbed following the announcement.
UK Chancellor Healey said the government will have £15 billion of fiscal headroom at the end of the forecast period, as he unveiled his autumn budget while ruling out broad-based tax increases.
GBP/USD slipped for a fourth straight session to around 1.3290 as markets braced for UK Finance Minister John Healey's first budget and the US Federal Reserve's rate decision, both due later Wednesday.
Britain's private sector expanded at its quickest pace since February, as the S&P Global Composite PMI reading for October climbed to 53.1, topping both September's 52 and the 51.8 consensus call. The figure carries weight for GBP/USD positioning.
UK retail sales fell 0.4% month-on-month in September, missing expectations for a 0.1% decline, after a revised 0.7% rise in August, the Office for National Statistics (ONS) reported. GBP/USD edged lower on the data.
GBP/USD trades near 1.3405 after UK September CPI came in hotter than forecast, reinforcing expectations the Bank of England will raise rates next month.
Annual UK consumer price growth climbed to 3.5% in September from 3.1% in August, beating forecasts and reinforcing market expectations that the Bank of England will tighten policy next month, lifting sterling.
Britain's annual inflation rate rose to 3.5% in September, exceeding the 3.4% median forecast from economists polled by Reuters, as petrol and diesel prices jumped sharply. The upside surprise strengthens the case for a Bank of England rate hike next month.