GBP/USD steady at 1.3230 as UK budget offsets Dollar pressure
The GBP/USD remains steady at around 1.3230 as market participants digest the UK’s autumn budget amid thin trading liquidity conditions with US markets remaining closed in observance of Thanksgiving Holiday. The pair is flat at 1.3232 virtually unchanged.
Sterling steady in thin Thanksgiving trade as Fed cut bets cap Dollar strength
European bourses trade with a positive mood after Wall Street ended Wednesday’s session in the green ahead of the long weekend. The UK Chancellor Rachel Reeves revealed the Autumn budget.
Analyst cited by Reuters revealed that “Fears about slow growth, weak productivity and sticky inflation are not reflective of an attractive investment backdrop.” Reeves budget was well received by the markets despite the downward revision of the economic growth for 2025 by the Office for Budget Responsibility (OBR).
Although this is bearish for Sterling, the Dollar remains pressured on expectations that the Federal Reserve might reduce borrowing costs at the December 9-10 meeting.
Odds for a 25 basis point rate cut by the Fed are 85%, unchanged from a day ago.
On Wednesday, US Initial Jobless Claims figures for the week ending November 21, rose by 216K beneath forecasts of 225K, an indication that the labor market is solid, despite showing signs of weakness.
Continuing claims for the week ending November 14 rose from 1.95 million to 1.96 million. In the meantime, the US Dollar Index (DXY). which tracks the buck’s performance versus six currencies, remains steady at 99.57.
Source : Fxstreet.com
