GBPUSD faces barricades around 1.1800 ahead of UK Employment/Autumn Statement

The GBPUSD pair declined in the early Asian session after sensing selling pressure while attempting to surpass the immediate hurdle of 1.1800. The Cable has turned sideways after a vertical rally as a market impulse has turned quiet ahead of the US midterm elections outcome.

S&P500 is facing immense pressure ahead of the midterm elections outcome. A majority win of Republicans for the House of Representatives will slow down the execution of expansionary policies ahead as they would be required confirmation from the former too before execution. Also, it will trigger political uncertainty in the economy.

The US dollar index (DXY) is auctioning in a chartered territory after registering a fresh three-month low of around 106.30.

This week, all eyes will remain on the contents of the UK Autumn Budget Statement from Chancellor Jeremy Hunt. The bifurcation of GBP 54bln into spending cuts and tax rises and dismantling of the ‘mini budget’ announced two months earlier by then UK PM Liz Truss will remain in focus. UK Chancellor warned earlier that everyone needs to sacrifice a bit by paying higher taxes to support the economy.

Support for energy bills from the government would be scaled down but support could be there for the low-income group.

Analysts at Danske Bank believe that “While we expect the Autumn Statement to deliver further clarity on closing the fiscal gap, we broadly expect a muted reaction in GBP.”

But before that, investors will keep an eye on the UK employment data, which will release on Tuesday. The jobless claims are expected to display a withdrawal of 12.6k against claims executed in the prior release. The Unemployment Rate is seen as stable at 3.5%.