The pound found stability on Friday after a turbulent week but is still on track for its longest losing streak in nearly six years. Investors are flocking to the dollar as UK political and economic uncertainty grows. Finance minister Rachel Reeves’ first budget since Labour took power—a high-tax, high-spend, high-borrowing plan—unsettled bond markets and weighed on sterling.

While bond yields rose and traders pulled back on UK rate-cut bets, concerns linger that the tax-heavy approach could stoke inflation and slow growth. Saxo Bank analysts warn that markets see the budget as “stagflationary,” with rising rates hinting at a tough road ahead for the UK economy.

The pound steadies after a rollercoaster week but heads for its longest losing streak in 6 years! UK’s new high-tax, high-spend budget has bond markets rattled, with fears of stagflation creeping in. Could this be a turning point for the UK economy?