Pound Sterling Price News and Forecast: GBP/USD struggles after Reeves scrapped income-tax rises

GBP/USD remains subdued around 1.3150 as UK Chancellor Reeves abandons tax rises

GBP/USD remains subdued for the third successive session, trading around 1.3150 during the Asian hours on Tuesday. The pair struggles as the Pound Sterling (GBP) comes under strain after the United Kingdom (UK) Chancellor of the Exchequer Rachel Reeves abandoned planned income-tax rises. The decision has raised questions about the UK’s fiscal outlook, despite the Office for Budget Responsibility lowering its budget deficit forecast to £20 billion from £35 billion. Reeves is still anticipated to pursue revenue through threshold changes and salary-sacrifice reforms, favoring a smaller-scale budget over significant tax increases.

Additionally, the British Pound continues to face downside pressure after softer economic data intensified bets on a December rate cut by the Bank of England (BoE). The UK economy delivered only marginal growth in Q3, with GDP declining monthly in September. This week, traders’ attention will be on inflation figures, flash PMIs, and any indications of cooling momentum in the manufacturing and services sectors. Read more...

GBP/USD steadies near 1.3165 as markets brace for key US jobs data

The Pound Sterling (GBP) remains firm during the North American session on Monday as traders prepare for the first Nonfarm Payrolls report from the US following the government reopening, which will be released on Thursday, a day that usually features Initial Jobless Claims. At the time of writing, GBP/USD trades at 1.3166, virtually unchanged.

The Greenback is recovering some ground after last week, as most of the Federal Reserve (Fed) officials struck hawkish commentary, triggering a re-pricing of a rate cut by the central bank at the December meeting. Data from the CME FedWatch Tool shows odds of 43% for a 25-basis-point cut. Read more...