fxs_header_sponsor_anchor

News

GBP/USD rises to near 1.2700 ahead of UK Budget Report

  • GBP/USD recovers intraday losses ahead of the Budget Report from the United Kingdom on Wednesday.
  • UK Chancellor Jeremy Hunt is expected to reduce national insurance contributions.
  • Fed Chairman Jerome Powell will testify before the US Congress' House Financial Services Committee.

GBP/USD retraces daily losses and seems to continue its winning streak, hovering around 1.2700 during the Asian trading session before the UK Chancellor Jeremy Hunt's Budget Report on Wednesday. Hunt is slated to unveil the government's fiscal agenda, outlining tax and spending plans ahead of the general election. Speculation suggests he may reduce national insurance contributions for employees, following a 2p reduction announced in the autumn statement.

UK’s BRC Like-For-Like Retail Sales (YoY) for February fell short of expectations, posting a figure of 1.0% compared to the anticipated 1.6%. This figure contrasts with the previous period's 1.4%. Later in the day, the S&P Global/CIPS Construction PMI for February is scheduled to be released, offering further insights into the UK's economic performance.

The US Dollar Index (DXY) attempted to halt its three-day losing streak, but returned to near 103.80, driven by subdued US Treasury yields. The 2-year and 10-year yields on US Treasury bonds stand at 4.55% and 4.14%, respectively, by the press time.

Investors are closely watching Federal Reserve (Fed) Chairman Jerome Powell's testimony before the US Congress' House Financial Services Committee, scheduled for Wednesday and Thursday. However, the US Dollar (USD) encountered downward pressure following softer-than-expected data from the US ISM Services Purchasing Managers Index (PMI). Additionally, attention is on the ADP Employment Change report for February, set to be released in the North American session.

The ISM Services PMI fell to 52.6 in February, below the anticipated decrease to 53.0 from 53.4. Moreover, Factory Orders (MoM) declined by 3.6% in January, surpassing the expected drop of 2.9%. Former New York Fed economist Steven Friedman suggested that Federal Reserve policymakers are likely to remain cautious about interest rate cuts in 2024 due to growth and volatile inflation. He hinted at the possibility of fewer rate cuts than the three initially anticipated for 2024.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.