GBP/USD stays below 1.3400 as UK borrowing exceeds forecasts in H1
GBP/USD loses ground for the fourth consecutive session, trading around 1.3380 during the Asian hours on Wednesday. The pair face challenges ahead of the United Kingdom’s (UK) Consumer Price Index (CPI) and Retail Price Index data for September.
The Pound Sterling (GBP) weakens as the UK government borrowed £7.2 billion more than expected in the first half of the fiscal year, with the budget deficit rising to £99.8 billion. This exceeded the Office for Budget Responsibility’s (OBR) £92.6 billion forecast, as debt interest payments surged 66% to £9.7 billion in September — the highest on record for the month. Read more…
GBP/USD extends into a third day of declines ahead of UK CPI print
GBP/USD stepped into a third straight bearish session on Tuesday, shedding weight and slipping back below the 1.3400 handle. Pound Sterling (GBP) traders are pulling back from their bids ahead of the latest round of Consumer Price Index (CPI) inflation data due from the UK on Wednesday, with the US side of the CPI data docket due on Friday.
Headline UK CPI inflation is expected to rose to 4.0% YoY in September, while core CPI is forecast to tick up to 3.7%. With UK inflation pressures still on the rise, the Bank of England’s (BoE) room to maneuver in the face of a steepening recessionary outlook is severely restricted. Read more…
GBP/USD slips as US Dollar rebounds, traders await UK and US CPI data
GBP/USD tumbles during the North American session on Tuesday, down over 0.17% as the Greenback stages a recovery, hitting a three-day high, according to the US Dollar Index (DXY). At the time of writing, the pair trades at 1.3384 after reaching a high of 1.3417.
A scarce economic docket triggered by the government shutdown in the US keeps traders leaning on social media posts or comments by US President Donald Trump. In addition, the upcoming release of the latest Consumer Price Index (CPI) figures in the US on Friday keeps price action subdued. Meanwhile, in the UK, Public Sector Net Borrowing in September reached 20.24 billion pounds, lower than the median forecast of 20.5 billion pounds deficit expected by analysts. Read more…
