GBP/USD rises to near 1.3200 ahead of the UK Autumn Budget
The GBP/USD pair continues its winning streak for the fifth day in a row, trading around the 1.3190 level during Asian hours on Wednesday. Traders are waiting for UK Chancellor of the Exchequer, Rachel Reeves, to deliver the Autumn Budget later today.
British Finance Minister Rachel Reeves is expected to unveil new tax rises worth tens of billions of pounds, a budget that will test her credibility with both bond investors and lawmakers pushing for higher social care spending. A more responsible fiscal stance could enhance long-term confidence in UK assets, providing moderate support for sterling. Read more…
GBP/USD strengthens as dollar support erodes due to US data
GBP/USD rose around 0.59% on Tuesday on broad-based US dollar weakness amid a scarce economic calendar in the UK, with investors awaiting the release of the UK’s autumn budget. At the time of writing, the pair is trading at 1.3181, closing at 1.3200.
US economic data continues to trickle in, but the numbers have raised the possibility that the Federal Reserve will cut interest rates at its December meeting. The Producer Price Index (PPI) for September rose 2.7% year-on-year, in line with estimates and the August reading, an indication of a pause in prices. The core producer price index for the same period fell from 2.9% year-on-year to 2.6%, below expectations of 2.7%. Read more…
