UK Budget on 28 October: GBP/USD, EUR/GBP and FTSE 100 Scenarios

Chancellor John Healey delivers his first UK Budget on Wednesday 28 October 2026, usually around 12:30 UK time. The US Federal Reserve then publishes its FOMC statement at 18:00 UK time on the same day. GBP/USD traded near 1.3373 on 21 October and EUR/GBP was near 0.8394 at the same time. The FTSE 100 closed at 10,733 on 20 October.

The main question for markets is fiscal credibility. The 30-year gilt yield peaked at about 6.05% on 8 October, its highest since 1998, according to roic.ai. It has since eased to about 5.83% as some investors bet on a cautious Budget. This article sets out the key levels and the calendar. It also outlines four illustrative scenarios.

The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.

Table of Contents

The figures below are dated and sourced. Market prices move quickly, so levels may differ by the time of reading.

Key Takeaways

  • The OBR Economic and Fiscal Outlook is due alongside the Autumn Budget 2026 on 28 October.
  • The FOMC statement follows at 18:00 UK time, because UK clocks go back on 25 October and US clocks only on 1 November.
  • The 30-year gilt yield hit 6.047% on 8 October and stood at about 5.83% on 21 October.
  • A Reuters poll put Healey's fiscal headroom at about £10bn to £12bn, down from £23.6bn in March.
  • GBP/USD rebounded from its 2026 low of 1.3137 on 14 October to about 1.3373 on 21 October.
  • EUR/GBP fell to a 2026 low of 0.8385 on 20 October.
  • The FTSE 100 closed at 10,733 on 20 October, about 1.6% below its record close of 10,910.55.
  • A Bank of England hike to 4.00% on 5 November was about 95% priced on 19 October, according to a broker note from Vantage Markets.

UK Budget 2026 at a Glance

Healey announced the Budget date on 31 July, as reported by City AM. It is his first Budget in Prime Minister Andy Burnham's government. The exact start time has yet to be confirmed. By convention, the Chancellor speaks after Prime Minister's Questions, around 12:30 UK time, as BDO explains.

Item Detail
Event UK Autumn Budget 2026 and OBR Economic and Fiscal Outlook
Date Wednesday 28 October 2026
Expected time About 12:30 GMT (after PMQs, time to be confirmed)
Chancellor John Healey (first Budget)
Prime Minister Andy Burnham
Same-day risk event FOMC statement at 18:00 GMT, press conference at 18:30 GMT
Next-day risk event ECB decision at 13:15 GMT on 29 October
Follow-up Bank of England decision on Thursday 5 November

Source: City AM, BDO, Federal Reserve, ECB. Times converted to UK time (GMT from 25 October).

What time is the UK Budget announcement?

The Treasury has not published a start time yet. Past Budgets have usually begun around 12:30 UK time, straight after PMQs. The OBR normally releases its forecast shortly after the speech ends.

Market Snapshot Before the Budget

Every price below carries its date and time. FX trades over the counter, so a consolidated volume figure is unavailable for currencies.

Asset Level Date and time Day range Recent move
GBP/USD 1.3373 21 Oct 2026, about 09:00 BST, session in progress 1.3371 to 1.3384 (partial) +1.8% from the 14 Oct low of 1.3137
GBP/USD 1.3379 close 20 Oct 2026, daily close 1.3301 to 1.3409 One-month high at 1.3409
EUR/GBP 0.8394 latest 21 Oct 2026, about 09:00 BST, session in progress 0.8394 to 0.8403 (partial) 2026 low of 0.8385 on 20 Oct
FTSE 100 10,733 close 20 Oct 2026, London close (16:30 BST) Low 10,673 -0.3% on the day
UK 30Y gilt 5.83% 21 Oct 2026, about 09:00 BST Previous 5.86% Peak 6.047% on 8 Oct
UK 10Y gilt 5.40% 21 Oct 2026, about 09:00 BST Previous 5.42% Peak 5.527% on 8 Oct

Source: Pound Sterling Live GBP/USD, Pound Sterling Live EUR/GBP, ad-hoc-news, Trading Economics 30Y, Trading Economics 10Y, roic.ai. Past performance is not a reliable indicator of future results.

Why Gilt Yields Matter So Much This Time

Gilt yields set the cost of government borrowing. They also feed into mortgage pricing and the pound. This year the bond market has tightened conditions before the Chancellor has said a word.

The 30-year gilt above 6%

The 30-year yield rose to 6.029% intraday on 1 October, the first move above 6% since 1998, as roic.ai reported. It climbed further to 6.047% on 8 October. On the same day the 10-year reached 5.527%, its highest since 2007, according to roic.ai.

Date UK 30Y gilt UK 10Y gilt Note
1 Oct 2026 6.029% (intraday) n/a First move above 6% since 1998
7 Oct 2026 6.036% n/a New high
8 Oct 2026 6.047% (peak) 5.527% (peak) 10Y highest since 2007
19 Oct 2026 About 5.8% n/a Investors buying gilts before the Budget
21 Oct 2026 5.83% 5.40% Reading at about 09:00 BST

Source: roic.ai, 1 Oct, roic.ai, 8 Oct, Bloomberg via Yahoo Finance, Trading Economics. Past performance is not a reliable indicator of future results.

Since then, several fund managers have bought gilts. They are betting on a dull and disciplined Budget, as Bloomberg reported on 19 October. Readers new to the asset class can find the basics in the Admirals guide on how government bonds work.

Gilt yields and mortgage rates

Higher UK borrowing costs reach households quickly. Lenders pulled sub-5% mortgage deals in early October, and some five-year fixes reached 6%. Former Bank of England chief economist Andy Haldane warned about the gilt link, as reported on 7 October. This is why gilt yields and mortgage rates sit at the centre of the Budget debate.

Fiscal headroom: how much room does Healey have?

Headroom is the buffer between the government's plans and its fiscal rules. A Reuters poll of 19 economists put it at about £10bn to £12bn on 15 October. That compares with £23.6bn at the March fiscal update.

Estimate Headroom Source and date
March 2026 fiscal update £23.6bn Official figure, cited by Reuters
Reuters poll median About £10bn to £12bn Reuters, 15 Oct 2026
Lowest estimates in the poll As low as £5bn Reuters, 15 Oct 2026
Institute for Fiscal Studies About £20bn if higher tax receipts offset most extra costs Reuters, 15 Oct 2026
Economists' suggested rebuild About £15bn to £16bn Reuters, 15 Oct 2026
Pantheon sensitivity A further 30bp rise in yields and Bank Rate costs about £5bn Reuters, 15 Oct 2026

Source: Global Banking and Finance Review / Reuters, 15 October 2026. Estimates are views of third parties and may change.

The wide range matters. The OBR's scoring of each measure could move the final figure by billions.

Public borrowing and the £3trn milestone

September public sector net borrowing came in at £24.52bn, above the consensus of £23.85bn. Net debt passed £3trn for the first time, as Reuters reported on 21 October. Borrowing from April to September reached £97.8bn, against the OBR's earlier forecast of £91.8bn.

Be On The Edge

What Could Be in Healey's First Budget

The government has pledged to keep the headline rates of income tax and VAT unchanged. The same pledge covers National Insurance, according to BDO. That leaves smaller taxes and spending choices to do the work.

Possible measure Status Source
Higher bank corporation tax surcharge Reported as under consideration Which?, 19 Oct
Lower mansion tax threshold (£2m to £1.5m) Possible, sources conflict Which?, 19 Oct; CMC Markets says it appears ruled out
CGT uplift-on-death reform Possible Which?, 19 Oct
Small business rates relief threshold (£12k to £18k) Possible Which?, 19 Oct
"Your First Home" scheme Possible Which?, 19 Oct
Defence Investment Plan £4.7bn spending pressure City AM, 31 Jul

Source: Which?, CMC Markets, City AM. Measures are reported or rumoured and are subject to the final Budget.

The bank surcharge question

Analysts widely see banks as one of the most Budget-sensitive sectors. The current 3% surcharge raises just over £1bn a year. Global Banking and Finance Review reported on 16 October that analysts expect either a return to 8% or a rise of 2 to 3 percentage points. The big four UK lenders were down 3% to 5% in October by that date.

What the gilt market wants

Fund managers have said credibility is the key test. Amundi warned that "the market will be disappointed if this buffer is below £10bn", as Trustnet reported on 14 October. Global Banking and Finance Review also cited Nomura on the risk of borrowing through public financial institutions.

Bank of England: A November Hike Is Largely Priced

The Bank of England announced on 17 September that it had held Bank Rate at 3.75%. The vote was 6 to 3, with three members voting for 4%. The MPC projected CPI at about 3.75% in Q4 2026 and slightly above 4% in Q1 2027, as the Bank of England minutes show.

Indicator Latest Expected Source
CPI, September (y/y) 3.5% 3.4% FXStreet, 21 Oct
Core CPI, September (y/y) 2.8% 2.7% FXStreet, 21 Oct
Motor fuel prices (y/y) +29.8% n/a MoneyWeek, 21 Oct
Unemployment rate 4.7% 4.9% FXStreet, 20 Oct
Regular pay growth 3.7% n/a FXStreet, 20 Oct
Bank Rate 3.75% 4.00% priced for 5 Nov Vantage Markets, 20 Oct

Source: FXStreet, MoneyWeek, Vantage Markets. Figures in the Expected column are consensus forecasts or market pricing. Forecasts are not a reliable indicator of future performance.

What the September vote showed

MPC member Vote announced on 17 September 2026
Megan Greene Raise to 4.00%
Catherine Mann Raise to 4.00%
Huw Pill Raise to 4.00%
Six other members Hold at 3.75%

Source: Bank of England, September 2026 Monetary Policy Summary and Minutes.

Markets price about four 25bp hikes by July 2027, according to FXStreet on 20 October. A tighter Budget could ease some of that pressure. That link matters for the Bank of England rate decision on 5 November.

FOMC on Budget Day: Why 18:00 UK Matters

The FOMC meets on 27 and 28 October. The statement is due at 2:00 pm ET and the press conference at 2:30 pm ET, per the Federal Reserve calendar. Because of the clock changes, that is 18:00 and 18:30 in the UK.

Event US time (EDT) UK time (GMT)
UK Budget speech (expected) About 08:30 About 12:30
FOMC statement 14:00 18:00
FOMC press conference 14:30 18:30
ECB decision, 29 October 09:15 13:15

Source: Federal Reserve, ECB. The time gap is four hours from 25 October until US clocks change on 1 November.

The Fed backdrop

The Fed raised its target range by 25bp to 3.75% to 4.00% on 16 September, as the FOMC statement shows. Admirals covered that decision in its blog on the Fed rate rise. A hold is expected in October. CME FedWatch put the chance of a December hike at 82.8% on 20 October, according to FXStreet.

On rough calculations by Vantage, the dollar's fall between 14 and 16 October matched about 70% of sterling's rebound. The DXY fell from 102.94 to 101.84 over those days, as Vantage Markets notes. For this reason, the Fed's tone at 18:00 could outweigh the Budget's effect on GBP/USD. The Admirals preview of the FOMC minutes gives more background.

ECB on 29 October and the Euro Side

The ECB deposit rate stands at 2.50% after September's hike. Danske expects a pause on 29 October and a final hike to 2.75% in December, as FXStreet reported. Eurozone inflation was 3.7% in September.

France is the other euro driver. The French 10-year spread over German Bunds reached 141bp on 12 October, the widest since 2012, according to FXStreet. That stress has helped push EUR/GBP to 16-month lows.

Budget Week Calendar in UK Time

UK clocks move from BST to GMT on Sunday 25 October. US clocks change a week later. Readers can track every release on the Admirals economic calendar.

Date Event UK time
Fri 23 Oct UK retail sales (September) 07:00 BST
Fri 23 Oct UK flash PMIs (October) 09:30 BST (usual time)
Sun 25 Oct UK clocks go back n/a
Tue 27 Oct FOMC meeting begins n/a
Wed 28 Oct UK Autumn Budget and OBR outlook About 12:30 GMT (expected)
Wed 28 Oct FOMC statement and press conference 18:00 and 18:30 GMT
Thu 29 Oct ECB decision 13:15 GMT
Thu 29 Oct US Q3 GDP (advance) 12:30 GMT
Thu 5 Nov Bank of England decision 12:00 GMT
Fri 20 Nov EU-UK summit n/a

Source: Federal Reserve, ECB, BDO, Currency News. PMI and GDP times follow usual schedules and may change.

GBP/USD Analysis Ahead of the Budget

GBP/USD fell from 1.3550 at the start of September to a 2026 low of 1.3137 on 14 October. That low came after a hot US CPI report. The pair then closed the day back at 1.3194, as Pound Sterling Live data show. It has since recovered to about 1.3373.

What happened to the $1.318 break?

CMC Markets' Michael Kramer said on 14 October that a break of $1.318 could open a move toward $1.30, as CMC Markets wrote. The break did happen intraday that same day. However, the pair closed above it, and the move toward $1.30 has yet to follow. The 14 October close of 1.3194 therefore remains the 2026 low on a closing basis, according to Pound Sterling Live data.

GBP/USD support and resistance

Level Type Source and date
1.3500 Resistance, K2FX upside level K2FX, 19 Oct
1.3448 2026 opening level Pound Sterling Live
1.3430 Resistance, recovery confirmation K2FX, 19 Oct
1.3409 One-month high (20 Oct) Pound Sterling Live
1.3349 50-day EMA FXStreet, 20 Oct
1.3277 9-day EMA FXStreet, 20 Oct
1.3250 20-day moving average K2FX, 19 Oct
1.3194 2026 low close (14 Oct) Pound Sterling Live
1.318 CMC break level toward 1.30 CMC Markets, 14 Oct
1.3137 2026 intraday low (14 Oct) Pound Sterling Live
1.3100 Support K2FX, 19 Oct
1.3000 Psychological level K2FX and CMC Markets

Source: K2FX, Pound Sterling Live, FXStreet, CMC Markets. Past performance is not a reliable indicator of future results.

The daily RSI sat near 51 on 19 October, a neutral reading, according to K2FX. Its house view was cautiously neutral while 1.3250 holds. More on how the pair behaves is in the Admirals guide to the major currency pairs.

EUR/GBP Analysis Ahead of the Budget

EUR/GBP has fallen from 0.8600 on 25 September to a 2026 low of 0.8385 on 20 October. It traded at 0.8394 on the morning of 21 October, down about 3.8% from its 2026 opening level of 0.8724, as Pound Sterling Live shows. Analysts link the move mainly to French fiscal stress and a hawkish Bank of England, as FXStreet noted.

EUR/GBP levels to watch

Level Type Source and date
0.8550 Resistance K2FX, 19 Oct
0.8500 to 0.8510 Resistance zone K2FX, 19 Oct
0.8450 Former support, now resistance K2FX, 19 Oct
0.8430 Former low, now resistance (KBC) FXMAG, 19 Oct
0.8385 2026 low and lower Bollinger Band Pound Sterling Live, K2FX
0.8355 to 0.8374 Support zone (KBC) FXMAG, 19 Oct
0.8350 Next support K2FX, 19 Oct

Source: K2FX, FXMAG, Pound Sterling Live. Past performance is not a reliable indicator of future results.

The daily RSI fell to about 22 on 19 October, a deeply oversold reading, according to K2FX. Oversold readings can precede a rebound. They can also persist during strong trends.

Why lower gilt yields may cut both ways

Rabobank expected EUR/GBP to hold its recent range, as FXStreet reported on 30 September. It also noted that more than 100bp of UK tightening is already priced. Lower gilt yields after a calm Budget could therefore reduce sterling's yield appeal.

Trade with €100 on MT5

FTSE 100 Analysis Ahead of the Budget

The FTSE 100 closed at 10,733 on 20 October, down 0.3% on the day as banks weighed. It was up 8.1% year to date and 1.6% below its record close, as ad-hoc-news reported. The record close of 10,910.55 dates from 27 February 2026, according to Wikipedia.

FTSE 100 support and resistance

Level Type Source and date
10,989.45 All-time intraday high (31 Jul 2026) Wikipedia
10,910.55 Record close (27 Feb 2026) Wikipedia
10,837 Resistance Hilsden Trading, 20 Oct
10,770 Resistance to reclaim Hilsden Trading, 20 Oct
10,700 to 10,715 Support Hilsden Trading, 20 Oct
10,660 Support Hilsden Trading, 20 Oct

Source: Hilsden Trading, Wikipedia. Past performance is not a reliable indicator of future results.

On 15 October the index closed at 10,840.35 after Healey backed fiscal discipline, as Reuters via Investing.com reported. Daily momentum has since cooled, with RSI near 54, according to Hilsden Trading.

Sector sensitivity to the Budget

Sector Budget link Recent move
Banks Possible surcharge rise to 8% or by 2 to 3 points Big four down 3% to 5% in October by 16 Oct; banks -0.8% on 20 Oct
Housebuilders Mortgage rates and the first-time buyer scheme Gave back late-September gains as mortgage rates rose
Utilities "GB Grid" plan Sector up about 4% since Burnham's remarks
Exporters and miners A weaker pound may support overseas earnings Precious metals and mining index down nearly 30% since March

Source: Global Banking and Finance Review, ad-hoc-news, CMC Markets. Past performance is not a reliable indicator of future results.

Many FTSE 100 companies are internationally focused, so the index is significantly affected by the pound's exchange rate, as Wikipedia notes. A weaker pound can therefore support the index in pound terms, although this link does not always hold. A stronger pound can act as a mild drag.

Five-Year Performance of the Pound Pairs and the FTSE 100

The table shows the previous five full calendar years and 2026 so far. FX figures use year-end closes. FTSE 100 figures use official index closes.

Year GBP/USD year-end GBP/USD change EUR/GBP year-end EUR/GBP change FTSE 100 year-end FTSE 100 change
2021 1.3521 -1.0% 0.8406 -5.0% 7,384.54 +14.30%
2022 1.2097 -10.5% 0.8849 +5.3% 7,451.74 +0.91%
2023 1.2732 +5.2% 0.8671 -2.0% 7,733.24 +3.78%
2024 1.2515 -1.7% 0.8270 -4.6% 8,173.02 +5.69%
2025 1.3448 +7.5% 0.8724 +5.5% 9,931.38 +21.51%
2026 to date 1.3373 (21 Oct, intraday) -0.6% 0.8394 (21 Oct, intraday) -3.8% 10,733 (20 Oct) +8.1%

Source: Pound Sterling Live GBP/USD history (2021, 2022, 2023, 2024, 2025, 2026), EUR/GBP history (2021, 2022, 2023, 2024, 2025, 2026) and Wikipedia for FTSE 100 closes. Period 1 January 2021 to 21 October 2026. Each change compares a year-end close with the previous one; the 2020 closes were 1.3661 for GBP/USD and 0.8849 for EUR/GBP. In the source data the EUR/GBP close for 2020 equals the 2022 close. All changes are price moves, before taxes and costs, which may vary. Past performance is not a reliable indicator of future results.

The 2022 row includes the mini-budget episode. Gilt yields and the pound both moved sharply then. The strong 2025 FTSE 100 gain followed a flat 2022 and smaller rises in 2023 and 2024. The currency pairs rose in some years and fell in others.

UK Budget Scenarios: Illustrative Paths

The scenarios below are illustrative. They summarise views published by third parties. They describe how markets could react and carry real uncertainty. Actual outcomes may differ.

Scenario Trigger Gilts GBP/USD EUR/GBP FTSE 100
A. Dull and disciplined Headroom rebuilt to £15bn or more 10Y could fall up to 20bp Could test 1.3409 to 1.3430 Could stay heavy near 0.8385 Domestic stocks could gain; a firmer pound may weigh on exporters
B. Credibility gap Headroom below £10bn or uncosted spending 30Y could retest 6.0% to 6.05% Could revisit 1.3194 to 1.318 Could rebound toward 0.8450 to 0.8500 Banks and housebuilders could fall; exporters may be cushioned
C. Fed overrides Hawkish FOMC at 18:00 UK Could follow Treasuries Could fall regardless of the Budget Limited direct effect Mixed
D. BoE follow-through Tighter Budget eases hike pressure Short-dated yields could fall Could soften on lower rate expectations Could rise Rate-sensitive stocks could benefit

Source: compiled from Bloomberg via Yahoo Finance, CMC Markets, K2FX, Vantage Markets, Currency News. Forecasts are not a reliable indicator of future performance.

Scenario A: dull and disciplined

Here Healey rebuilds headroom to about £15bn or more. Revenue comes from smaller taxes, possibly including a modest bank surcharge rise. UBS and HSBC have said a smooth Budget could lower the 10-year gilt yield by up to 20bp, as FXMAG reported.

  • GBP/USD could test resistance around 1.3409 to 1.3430 if the FOMC is not hawkish.
  • EUR/GBP could stay under pressure near its 2026 low.
  • Banks could see relief if the surcharge rise sits at the low end.
  • The downside is that lower yields may reduce sterling's appeal to yield-seeking investors.

Scenario B: credibility gap

Here headroom falls below £10bn. Spending may also look back-loaded or uncosted. CMC Markets said on 14 October that the 10-year gilt could head toward 5.6%, and toward 5.9% if tax rises fall short, according to CMC Markets. This could resemble the pattern of rising yields and a falling pound seen in 2022.

  • GBP/USD could revisit 1.3194 and the 1.318 area.
  • A close below those levels could expose 1.3100 and 1.3000, based on K2FX levels.
  • EUR/GBP could rebound toward 0.8450 to 0.8500.
  • The FTSE 100 could lose the 10,660 support level if banks and housebuilders fall.
Budget day carries two major events. The Budget speech is due around 12:30 UK time, and the FOMC statement follows at 18:00 UK time, so a clear early reaction can reverse by the evening.

Scenario C: the Fed overrides the Budget

At 18:00 UK time, the FOMC could signal a December hike more firmly. That could lift the dollar back toward its 14 October level of 102.94 on the DXY. GBP/USD could then fall whatever the Budget says, as the Vantage Markets analysis implies. A dovish message could have the opposite effect.

Scenario D: Bank of England follow-through

A tighter Budget could reduce the need for further rate rises after November. Markets currently price about four hikes by July 2027. Crédit Agricole calls that pricing aggressive, as Currency News reported. A repricing could weigh on sterling even in scenario A.

Analyst Forecasts and Views

Analysts differ widely. The table gathers published views with their dates.

Who View Date Horizon
CMC Markets (Michael Kramer) GBP/USD range $1.32 to $1.37; below $1.318 opens $1.30 14 Oct 2026 Around the Budget
K2FX Cautiously neutral on GBP/USD while 1.3250 holds 19 Oct 2026 Near term
Crédit Agricole CIB GBP/EUR 1.16 before end-2026 (about 0.862 EUR/GBP) 19 Oct 2026 End-2026
ING GBP/EUR range of 1.18 to 1.19 (about 0.840 to 0.847 EUR/GBP) 19 Oct 2026 Next few months
Société Générale GBP/EUR 1.15 (about 0.870 EUR/GBP) 19 Oct 2026 Q3 2027
Rabobank EUR/GBP to hold its recent range 30 Sep 2026 Weeks ahead
UBS and HSBC A smooth Budget could cut the 10Y gilt yield by up to 20bp 19 Oct 2026 After the Budget
Danske ECB pause on 29 Oct, hike to 2.75% in December 20 Oct 2026 December 2026
CME FedWatch 82.8% chance of a Fed hike in December 20 Oct 2026 December 2026

Source: CMC Markets, K2FX, Currency News, FXStreet (Rabobank), FXMAG, FXStreet (Danske), FXStreet (FedWatch). Forecasts are not a reliable indicator of future performance.

ING sees the EU-UK summit on 20 November as a possible support for sterling, according to Currency News. Société Générale takes the opposite view and favours a weaker pound by 2027.

Pros and Cons of Trading Around Budget Day

Event days can bring larger moves in both directions. The table sets out both sides.

Pros Cons
Large events can lead to larger price moves. Spreads can widen sharply around releases.
Key levels are well documented by analysts. Prices can gap through stop-loss orders.
The calendar is known in advance. Two major events on one day can reverse early moves.
Liquidity in GBP/USD and EUR/GBP is usually deep. Leverage magnifies losses as well as gains.

Admirals editorial summary of common event-day features.

Invest with €1

How Traders Often Approach Budget Day Volatility

Traders often prepare a plan before the event. Attention usually centres on the scheduled releases at about 12:30 and 18:00 UK time. The list below describes common habits. It is not a recommendation to trade.

  1. Traders often mark key levels such as 1.3194 on GBP/USD and 0.8385 on EUR/GBP in advance.
  2. Many traders also follow the OBR headroom figure closely.
  3. Some traders reduce position size before releases to manage risk.
  4. On days with two major releases, each event can trigger its own reaction.
  5. Many traders wait for daily closes before judging whether a level has broken.
  6. Some traders use a demo account to test a plan first.

Stop-loss orders can help manage risk. They may not fill at the chosen price when markets gap. The Admirals guide to forex risk management covers these points. A demo account uses virtual funds, and results may differ from live trading.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Key Risks to Watch

  • Higher oil prices could keep UK inflation elevated.
  • A global bond sell-off could lift gilt yields whatever the Budget contains.
  • Pre-Budget leaks could move markets before 28 October.
  • The OBR's scoring could shift headroom by several billion pounds.
  • BofA's Sinha said FX options do not treat the Budget as a key risk event, which may leave markets exposed to a surprise.
  • French politics could move EUR/GBP independently of the UK.

Sources for the points above include Global Banking and Finance Review. The OBR point draws on the Reuters poll. Brent crude matters because higher energy costs have lifted UK inflation, with motor fuel prices up 29.8% over the year to September, according to MoneyWeek.

How Admirals Clients Can Access These Markets

Admirals offers CFDs on Forex. These include GBP/USD and EUR/GBP. It also offers CFDs on indices, including the UK100, which is based on the FTSE 100. CFDs allow exposure to price moves in both directions. They also carry a high risk of loss because of leverage. Costs such as spreads and overnight swaps apply and may vary.

Conclusion

The UK Budget on 28 October tests fiscal credibility after a sharp rise in gilt yields. The Reuters poll estimate of about £10bn to £12bn would leave less room than in March. The FOMC at 18:00 UK time adds a second risk on the same day. The ECB follows on 29 October. The Bank of England decides on 5 November.

CMC Markets and Pound Sterling Live data point to 1.318 and 1.3194 on the GBP/USD downside. On the upside, the 1.3409 one-month high and the 1.3430 K2FX level stand out. For EUR/GBP, 0.8385 is the 2026 low. In Hilsden Trading's analysis, 10,660 and 10,770 frame the near-term picture for the FTSE 100. Every scenario carries both upside and downside risk.

Frequently Asked Questions

When is the Autumn Budget 2026?

The Budget is on Wednesday 28 October 2026, with the speech usually expected around 12:30 UK time after PMQs.

What time is the FOMC statement on 28 October?

The FOMC statement is due at 18:00 UK time, and the press conference starts at 18:30 UK time that evening.

Will the pound fall after the Budget?

The reaction depends on headroom and gilt yields. The Fed's tone that evening could also move the pound either way.

Is the UK Budget priced in?

Partly, since gilts rallied on hopes of discipline, yet a surprise in headroom or OBR scoring could still move markets.

How will the Budget affect mortgage rates?

Mortgage rates often track gilt yields, so a credible Budget could ease them and a weak one could raise them.

How does the Budget affect the stock market?

Banks and housebuilders are often most sensitive to tax and rate news, and exporters may gain when the pound weakens.

What is fiscal headroom?

Headroom is the margin between planned borrowing and the fiscal rules, put near £10bn to £12bn by a Reuters poll.

Some of the content on this page was created with the help of automated tools. All final text has been reviewed by Admirals and is under its editorial responsibility.

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Admirals
Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.

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