Sterling Rises for 5th Session

The British pound climbed to $1.35 on Thursday, extending its winning streak to five days, its longest since April.

Gains largely reflect dollar weakness as a US government shutdown, the third under Trump, weighs on sentiment.

Adding to positive momentum, the Bank of England kept interest rates unchanged in September, with markets currently pricing in the next rate cut only in 2026.

Still, BoE officials struck differing tones: Catherine Mann warned that sticky inflation is materialising, with firms embedding higher labour costs into prices, while Deputy Governor Sarah Breeden cautioned against leaving rates high for too long.

At the same time, investors are awaiting more details on potential tax increases.

While Chancellor Rachel Reeves gave no specifics in her speech at the Labour Party conference, she emphasized her commitment to fiscal discipline and pledged to adhere to established fiscal rules.