Pound Sterling Price News & Forecast: The United Kingdom’s Autumn Forecast Statement was released, and the GBP recovered versus its main competitors. The British pound has recovered as a result of the Labour Party’s first budget presentation in more than 15 years, which included large spending promises and higher taxes.In order to address a deficit in public spending that was left over from the Conservatives, UK Chancellor of the Exchequer Rachel Reeves has announced a 40 billion pound tax increase. Employer’s increased National Insurance (NI) contributions are anticipated to be the primary source of increased tax collection in the upcoming year. Employer’s contributions to NI have increased from 13.8% to 15% by the government.
- Additionally, the government has increased taxes on private jet travel and inheritance money, as well as charges on a number of other items, including alcohol, tobacco, and passengers on airplanes.
- The government has said that the money collected from higher taxes will be used to pay the National Health Sector (NHS), affordable housing, fuel duty freezes, the establishment of the electric vehicle (EV) industry, and 11 green hydrogen projects.
Market movers for the daily digest: The pound sterling rises versus the US dollar
- After the release of US macroeconomic data on Wednesday, the New York session saw the pound sterling reach a new intraday high of 1.3030 against the US dollar (USD).
- After the US ADP Employment Change for October, which revealed significantly higher-than-expected and slower Q3 GDP growth, the US dollar declines and the GBP/USD pair recovers sharply.
- In September, private firms in the United States added 233K workers, which was an upward revision from 143K. A reduced rate of private labour growth of 115K was anticipated by economists.
- In the meantime, the US economy grew by 2.8% in the third quarter of this year, according to the US Bureau of Economic Analysis (BEA), which was less than anticipated and the former reading of 3.0%.
- Slower GDP growth seems to have lessened the impact of positive private payroll data.
- Investors will be closely watching Friday’s release of the US Nonfarm Payrolls (NFP) data for October for new Federal Reserve (Fed) interest rate signals for the rest of the year.
- The CME FedWatch program predicts that the central bank will further lower interest rates by 25 basis points during its November and December policy meetings.
TS SET Results 2024: Releasing Soon, Important Dates, Admit card
Good News for Government Employees: Govt’s New GR about Salary and Retirement
Value of the Pound Sterling Surpasses 1.3000
- During Wednesday’s North American trading hours, the value of the pound sterling rises again above 1.3000 in relation to the US dollar (USD). Around 1.2900 on the daily time frame, the GBP/USD pair is holding the lower border of a Rising Channel chart formation.
- The Cable’s short-term trajectory is still unclear because it continues to trade below the 50-day Exponential Moving Average (EMA), which is currently trading at 1.3070.
- The Relative Strength Index (RSI) remains above 40.00 for 14 days. If it does not rise above it, another bearish momentum would start.
- For bulls of the pound sterling, the 200-day EMA around 1.2845 will be a key support area. The Cable will encounter resistance on the upside close to the 20-day EMA at 1.3060.
