GBP/USD slips near 1.3150 as UK government drops plans to raise tax rates
GBP/USD retraces its recent gains from the previous session, trading around 1.3150 during the Asian hours on Friday. The pair depreciates as the Pound Sterling (GBP) declines amid rising concerns over fiscal discipline and political stability in the United Kingdom (UK).
The Financial Times reported that the UK government has dropped plans to raise income-tax rates ahead of the November 26 budget. Prime Minister Keir Starmer and Chancellor Rachel Reeves abandoned earlier proposals to increase basic and higher tax bands, choosing instead to pursue less direct revenue measures to address a £30 billion fiscal shortfall. Read more…
GBP/USD bulls struggle as UK tax plans and weak data weigh
GBP/USD caught a brief bullish slant to Thursday’s trading window, with Cable traders brushing off a worse-than-expected Gross Domestic Product (GDP) growth print from the third quarter. However, late-day flows turned sour after reports broke that UK Prime Minister Keir Starmer is poised to cancel a batch of planned tax increases intended to help bolster the UK’s questionable financial position.
With the US government set to reopen, at least temporarily, markets are now looking ahead to the resumption of critical economic dataset releases. US White House officials toyed with the idea of declaring entire batches of inflation and growth data as “lost” during the government closure, specifically the October inflation and employment figures, which could never be released. A critical gap in key inflation and labor information is a prospect that is likely sitting poorly with investors who are eager to try and draw a bead on the chances of a third straight interest rate cut from the Federal Reserve (Fed) on December 10. Read more…
GBP/USD rises towards 1.3200 as US reopening weigh on USD, BoE cut bets mount
The Pound Sterling (GBP) advances on broad US Dollar (USD) weakness amid the US government’s reopening, which would unveil a tranche of economic data for traders and the Federal Reserve (Fed). GBP/USD trades at a two-week high of 1.3197, up 0.46%.
Economic data releases in the US remain scarce, but it is expected that they will pick up next week. Fox’s Edward Lawrence said that September’s Nonfarm Payrolls report is expected to come out next week, citing sources. The US government reopening releases funds to the government offices, but traders remain doubtful given the Trump administration’s threat of another shutdown late in January. Read more…
Read the full article here