No docket in the UK is leaving the pound free to follow its European peer, both printing fresh session highs as of writing around 1.6020 and 1.2885 against the greenback respectively.
In another direction, PM David Cameron has commented at the Conservative Annual Conference that the recovery in the British economy is taking longer than expected, and a reduction of the deficit is key to spur growth. He also argued that interest rate cuts are the main tools to improve the employment figures via keeping rates low.
Also Fitch’s Riley stressed that a debt-to-GDP ratio at 100% would threaten the UK’s AAA rating in the long-term view, still vulnerable despite spending cuts.
GBP/USD is up 0.08% at 1.6019 facing the next resistance at 1.6046 (high oct.9) followed by 1.6108 (MA10d) then 1.6142 (high Oct.8) and 1.6157 (MA21d).
On the downside, a penetration of 1.5975 (low. Oct.9) would clear the way to 1.5960 (low Sep.10) then 1.5923 (low Sep.7) and 1.5915 (MA55d).