Pound Poised for Best Monthly Gains Since April Amid UK Budget Anticipation

The British pound is on track to record its best monthly performance since April against both the US dollar and euro, despite a slight dip in Friday's trading. The currency was last down 0.3% against the dollar at $1.342 but still poised for a weekly gain. It has gained more than 1% for the month after two consecutive months of declines.

The pound's move is largely driven by price action in other major currencies, particularly in Japan where authorities are suspected to have intervened in the yen market. Sterling dipped 0.5% against the yen on Friday, its second straight day of decline.

However, attention has shifted back to the UK outlook with the announcement that the next budget will be brought forward to October 28. Traders will be closely watching the budget for clues on how the new prime minister and finance minister plan to boost economic growth without straining public finances.