GBP/USD holds gains above 1.3050 ahead of BoE policy decision
GBP/USD extends its gains for the second successive session, trading around 1.3060 during the Asian hours on Thursday. The pair holds gains as the Pound Sterling (GBP) receives support ahead of the Bank of England’s (BoE) interest rate decision due later in the day. The BoE is widely expected to keep its policy rate unchanged at 4% in November, but softer inflation and wage data have strengthened the case for rate cuts in the coming months.
Expectations are mounting for Chancellor Rachel Reeves to introduce stricter fiscal measures in her November 26 budget to tackle the UK’s substantial borrowing requirements. In a pre-budget address, Reeves hinted at potential tax hikes and underscored the importance of managing debt and borrowing expenses. Read more…
GBP/USD finds a weak floor ahead of BoE rate call
GBP/USD grappled with a near-term technical floor on Wednesday, finding some breathing room just north of 1.3000. A thin, dead-cat-style bounce has greeted Cable traders following several weeks of one-sided declines. The Bank of England (BoE) and its latest interest rate decision looms large on Thursday, and volatile private datasets have taken precedence in US data flows as the US government shutdown keeps official economic data sources dark.
The Cable pair heads into Thursday’s market sessions battling near the 1.3050 level. GBP/USD is down a little over 3% from its last swing high near 1.3470 in mid-October, having lost ground for all but two of the last 13 consecutive trading days. Read more…
GBP/USD steadies after sharp drop as Reeves’ tax warning sparks fiscal jitters
GBP/USD holds firm on Wednesday following Tuesday’s 0.90% losses due to the UK’s finance minister Rachel Reeves saying that she could raise taxes to meet the fiscal rules. The pair trades at 1.3028, virtually unchanged, at the time of writing.
On Tuesday, Reeves crossed the wires, saying that the UK is facing challenges since her first budget, amid growing questions about which taxes she would raise to keep the budget on track. Analysts at Société Générale said, “She is justifying tough decisions to come in the budget. The fact that this is happening at all means that manifesto pledges will not be followed to the letter.” Read more…
