Pound Sterling rebounds as trades pare back BoE dovish bets
The Pound Sterling (GBP) outperforms its majority of peers on Thursday as traders have pared back bets that the Bank of England (BoE) will cut interest rates aggressively after the United Kingdom (UK) Labour government announced its first Autumn Forecast Statement on Wednesday.
The budget presentation from UK Chancellor of the Exchequer Rachel Reeves was filled with the biggest tax increase in almost three decades to repair the hole in public services, which she referred to as “inheritance from Conservatives”.
The Pound Sterling edges higher to near 1.3000 against the US Dollar (USD) in Thursday’s London session. The GBP/USD pair gains as the US Dollar drops ahead of a slew of United States (US) economic data to be announced on Thursday and Friday. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, tests the 104.00 region.
The US Dollar falls slightly as lower-than-expected US GDP growth in the third quarter offset a surprisingly upbeat ADP Employment data for October. ADP data showed that private payrolls came in significantly higher at 233K against 159K in September.
For more cues on the current status of the job market, investors will pay close attention to the US Nonfarm Payrolls (NFP) data for October, which will be published on Friday. The NFP report is expected to show that the economy added 115K workers, lower than 254K jobs created in September. The Unemployment Rate is expected to remain steady at 4.1%.
Source: Fxstreet
