UK borrowing hits 5-year high

• USD firmer as JPY softens

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Yesterday's currency recap

GBP traded marginally weaker and USD remained steady after Kevin Hassett told CNBC he thinks the government shut down will likely end this week.

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Today's GBP rates

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*Daily move - against G10 rates as of 06:00 BST, 21.10.25

** Indicative rates - interbank rates as of 06:00 BST, 21.10.25

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Key data points

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Speeches

• EUR: ECB Lane, Lagarde

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What we think

USD is starting the day stronger, benefitting from a weaker JPY across the board. Sanae Takaichi won the key vote to become Japans new PM and BoJ officials see no urgency to raise interest rates next week.

Data this morning has shown that UK government borrowing reached a 5-year high in September, with total borrowing up to £99.8bn – £7.2bn more than forecast by the OBR. These numbers deal another blow to Chancellor Reeves in the run up to her budget.‍

CAD CPI is due later today as GBPCAD continues to trade near 9-year highs.

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Have a great day.

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