British Pound Latest: GBP/USD Testing 1.2500 on US Dollar Weakness
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British Pound Latest: GBP/USD Analysis and Chart
- Cable gains on US dollar weakness.
- UK Autumn Statement is released on Wednesday.
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Ahead of this week’s Autumn Statement, UK PM Rishi Sunak is promising to reduce debt and cut taxes in an effort to boost the UK economy further. PM Sunak today tweeted, ‘Now that inflation is halved, we can turn our attention to cutting tax… We will reward work, by cutting taxes and reforming our benefits system so work always pays.’ In a further tweet, PM Sunak added, ‘I will do what is necessary to get our debt down and provide financial security. That will help keep inflation falling and get mortgage rates back down to affordable levels.’ UK Chancellor of the Exchequer Jeremy Hunt will deliver the Autumn Statement on Wednesday at 12:00 UK.
The latest CME Fed Fund rate predictions show a period of consolidation before US rate cuts start in May next year. The latest predictions suggest the Fed will cut rates by a total of 100 basis points over the course of the year to 425-450 in mid-December.
CME Fed Watch Tool
While the Autumn Statement will be closely followed, in the short-term cable is getting a boost from ongoing US dollar weakness. The US dollar index has given back nearly half of the mid-July to early-October rally and is now testing the 200-day simple moving average for the first time since mid-August. A confirmed break of this indicator, and of the 50% Fibonacci retracement level at 103.41, would leave the dollar vulnerable to further downside.
GBP/USD Daily Price Chart
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