GBP/USD Weekly Forecast: Pound Sterling recovery at risk ahead of fresh batch of US data
The Pound Sterling (GBP) staged an impressive recovery against the US Dollar (USD), as GBP/USD clinched fresh monthly highs above the 1.3250 psychological level.
Amidst increased odds of interest rate cuts by the Bank of England (BoE), GBP/USD found its feet, thanks to the UK Autumn Budget and growing expectations surrounding a US Federal Reserve (Fed) December rate reduction. Read more…
GBP/USD flat lines near 1.3250 amid UK budget relief
The GBP/USD pair holds steady 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 might be limited due to the rising expectations of a Federal Reserve (Fed) interest rate cut in the December meeting. The US November ISM Manufacturing Purchasing Managers Index (PMI) report is due later on Monday.
UK Chancellor Rachel Reeves revealed the UK’s Autumn Budget last week, which includes tax hikes and changes to business rates, benefits, and pensions.The Office for Budget Responsibility (OBR) revised its 2025 growth forecast for the UK upward, from 1.0% to 1.5% following the budget announcement. Nonetheless, OBR lowered its growth estimates to 1.4% in 2026 and 1.5% in all of the following four years. The 2025 UK Autumn Budget could lead to a modest relief rally for the Pound Sterling (GBP) against the US Dollar (USD) in the near term. Read more…