Sterling Strengthens Amid Market Shifts and Budget Assurances

Sterling climbed against the dollar, supported by positive UK business activity revisions and a stable budget. The revision of November's UK PMI and expectations of rate changes by the Federal Reserve fueled the pound's rise, marking consecutive weekly gains against major currencies.

Sterling gained against the dollar, marking its second consecutive weekly rise, as concerns over the UK budget eased and a revision in business activity supported the currency.

The pound has surged recently after UK finance minister Rachel Reeves' budget was well-received by the bond market. November's S&P Global UK Composite PMI, encompassing services and manufacturing, also saw upward revisions.

ING's Chris Turner pointed to a sterling rally fueled by traders reversing bets against the currency. Expectations of a BoE rate cut in December and potential Federal Reserve rate cuts next week also bolstered sterling.