GBP/USD Weekly Forecast: Sterling recovery at risk ahead of new set of US data
The pound has made an impressive recovery against the US dollar, with the GBP/USD pair hitting new monthly highs above the psychological level of 1.3250.
Amid increasing odds of the Bank of England cutting interest rates, the GBP/USD pair has found its feet, thanks to the UK’s autumn budget and rising expectations surrounding a rate cut from the US Federal Reserve in December. Read more…
GBP/USD flat lines near 1.3250 amid UK budget easing
The GBP/USD pair settled near 1.3245 during the Asian session on Monday, as traders continue to digest the UK’s autumn budget. The potential downside for the major pair may be limited due to rising expectations of a rate cut from the Federal Reserve at the December meeting. The US November Manufacturing Purchasing Managers’ Index (ISM) report is scheduled for release later on Monday.
UK Chancellor Rachel Reeves unveiled the UK’s autumn budget last week, which includes tax rises and changes to business rates, benefits and pensions. The Office for Budget Responsibility (OBR) revised the UK’s 2025 growth forecast upwards, from 1.0% to 1.5% following the Budget announcement. However, the Office for Budget Responsibility lowered its growth estimate to 1.4% in 2026, and then to 1.5% in each of the following four years. The UK Autumn Budget 2025 could lead to a modest rise in the pound sterling (GBP) against the US dollar (USD) in the near term. Read more…
