GBP/USD trades on a stronger note below 1.2750 on a weaker US Dollar, UK’s budget
The GBP/USD pair breaks above the 1.2700 barrier and currently trades around 1.2735 during the early Asian session on Thursday. The uptick of the major pair is bolstered by the weaker US Dollar (USD) and encouraging news from the UK Spring Budget.
The Federal Reserve (Fed) Chair Jerome Powell told House lawmakers on Wednesday that interest rates might start coming down this year, but also cautioned that the Fed would take its time until the central bank gains greater confidence that inflation is moving sustainably toward the 2% target. Powell’s comment indicated that the Fed officials remain cautious about not losing the progress made against inflation, and the decision-making will be based on incoming data. Read more…
GBP/USD eyes 1.2800 as UK’s budget and Powell’s comments lift the Pound
The GBP/USD climbed 0.31% during the North American session and traded at 1.2746 after bouncing off daily lows of 1.2690. UK’s spring budget announcement and US Federal Reserve’s Chair Jerome Powell’s testimony sponsored a leg-up in the pair, which is set to test the 1.2800 mark.
The UK’s Chancellor of the Exchequer, Jeremy Hunt, presented the spring budget to the House of Commons. Hunt said that according to the Office for Budget Responsibility (OBR), the economy is expected to grow 0.8% in 2024 and 1.9% next year, 0.5% higher than the autumn forecast. Regarding debt, the OBR foresaw headline debt would rise above 100% of GDP, though they noted that it would fall every year to just 94.3% by 2028-29. Read more…
