The Pound Sterling remains stable on Tuesday as traders express concerns regarding the economic outlook in the US, while market participants focus on the upcoming NVIDIA earnings for Q3, contributing to a decline in US equity markets. The GBP/USD is currently positioned at 1.3156, reflecting minimal movement.
GBP/USD remains stable as market participants evaluate US labor statistics and prepare for the upcoming Nonfarm Payrolls report on Thursday. Probability of a Fed cut increases to 55% as market anxiety escalates in anticipation of crucial NVIDIA AI-sector earnings. Attention is on UK CPI and the Autumn Budget scheduled for November 26, as markets are currently pricing in an 83% probability of a Bank of England rate cut in December.
> Sterling maintains a stable position amid weaker US data and increasing expectations for Fed rate cuts, while attention turns to UK inflation and the upcoming Autumn Budget : The US Department of Labor disclosed that Initial Jobless Claims for the week ending October 18 stood at 232K, whereas continuing claims increased to 1.957 million. The release of GBP/USD was subdued, as traders focused on the upcoming Nonfarm Payrolls data scheduled for Thursday. The likelihood of the Federal Reserve reducing rates at the December meeting is currently at 55%, an increase from last week’s sub-50% probabilities, as per reports. In addition, market participants are closely monitoring British inflation figures, as these could significantly influence the Bank of England’s trajectory regarding interest rates. The probability of a rate cut in the money markets is currently at 83%.
Recently, the Chief Economist of the Bank of England, Huw Pill, indicated that inflation-related measures have not decelerated to the extent he anticipated in recent times. He stated that “I think policymakers should be cautious about over-interpreting the latest news in data, because there is a lot of noise in the data flow, and partly because of some of the challenges our colleagues in the Office for National Statistics have faced.” Market participants are closely monitoring the upcoming release of the Autumn Budget on November 26. Chancellor Rachel Reeves is anticipated to secure tens of billions of pounds to achieve her fiscal objectives, as per analysts’ assessments.