Bloomberg Surveillance · Thursday, July 23, 2026
Darren May observes a shift where fiscal policy in G10 countries is increasingly influencing currency markets, a trend amplified by events like the UK's past fiscal missteps. While the US fiscal discussion has subsided, risks in other regions like Japan, the UK, and France could impact their currencies.
“So I blame Liz Trust for this. Do you remember her back in the day, Prime Minister Trust the letters? Right, Okay, Sir King's next up. Up until that point, I would have said fiscal policy anywhere, at least in G ten was kind of an irrelevance for the currency market.”
“But what Liz Trust did and Quasi Quarteng is they managed to get currencies in G ten sensitive to fiscal risks. And now he's seen it with Japanese fiscal risk. We've seen it still obviously with Sterling. And I think Tom's good to bring up the oats, you know, do French politics become a new driver for well, the bomb market obviously, but by extension for the euro.”