GBP/USD Rebounds to $1.2500 After Budget Announcement
GBP/USD closed positively for the third consecutive trading day on Tuesday, reaching its highest level since early September at $1.2560. While experiencing a slight pullback on Wednesday, the pair remains above the $1.2500 mark.
UK Chancellor of the Exchequer, Jeremy Hunt, is set to unveil the autumn budget report in the late session. Hunt is expected to announce significant tax cuts for businesses to stimulate economic growth, raise the national living wage, and increase the income of low-wage workers by around 10%.
Assessing the impact of these measures on inflation and inflation expectations is challenging, but recent comments from Bank of England (BoE) officials suggest caution in dismissing additional tightening measures in the future.
In the latter half of the day, U.S. economic data will reveal durable goods orders for October and weekly initial jobless claims.
If the number of initial jobless claims continues to rise, the US Dollar (USD) may struggle to find demand. Investors will also closely monitor developments on Wall Street ahead of the Thanksgiving holiday. In the event that risk aversion prevails after the opening bell, the USD could weaken against its counterparts.
UK Chancellor of the Exchequer, Jeremy Hunt, is set to unveil the autumn budget report in the late session. Hunt is expected to announce significant tax cuts for businesses to stimulate economic growth, raise the national living wage, and increase the income of low-wage workers by around 10%.
Assessing the impact of these measures on inflation and inflation expectations is challenging, but recent comments from Bank of England (BoE) officials suggest caution in dismissing additional tightening measures in the future.
In the latter half of the day, U.S. economic data will reveal durable goods orders for October and weekly initial jobless claims.
If the number of initial jobless claims continues to rise, the US Dollar (USD) may struggle to find demand. Investors will also closely monitor developments on Wall Street ahead of the Thanksgiving holiday. In the event that risk aversion prevails after the opening bell, the USD could weaken against its counterparts.
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