POUND BENEFITS FROM A HAWKISH BOE

What happened: The pound has become the main beneficiary of US dollar weakness, with GBPUSD reaching five-week highs as markets anticipate aggressive Bank of England rate hikes. Key numbers: September borrowing was £24.5 billion, 7.7% above a year earlier and slightly above the £23.8 billion Reuters consensus. Why it matters: A November rate hike is described as all but a foregone conclusion, and more than four hikes would outpace the Fed, laying groundwork for a GBPUSD rally. The main risk cited is whether the Treasury's draft budget disappoints the bulls.

The pound has become the main beneficiary of US dollar weakness, with GBPUSD reaching five-week highs as markets anticipate aggressive Bank of England rate hikes.

A November rate hike is described as all but a foregone conclusion, and more than four hikes would outpace the Fed, laying groundwork for a GBPUSD rally. The main risk cited is whether the Treasury's draft budget disappoints the bulls.