PT Solid Gold Berjangka | GBP/USD Weakens Below 1.3000 Ahead of US PCE Data
GBP/USD SOLID GOLD BERJANGKA, SG BERJANGKA , SOLID GROUP, PT SGB , SGB
Solid Gold Berjangka | GBP/USD extended its decline to around 1.2955 during the early Asian session on Thursday. The pound sterling (GBP) moved lower after the UK budget announcement. Attention will now turn to the US Personal Consumption Expenditure (PCE) Price Index data due later on Thursday.
The new UK Labour government released its first budget on Wednesday, which included a £40 billion tax hike to plug holes in public finances and allow for investment in public services, according to CNBC. One of the measures that is projected to be one of the most revenue-generating for the UK Treasury is an increase in the amount employers pay in National Insurance (NI), a tax on income.
The US Gross Domestic Product (GDP) for the third quarter fell below expectations. The ADP Employment Change report for October revealed that private companies hired more people than expected. According to the CME FedWatch tool, traders have priced in a nearly 95.2% chance of a 25 bps rate cut by the Fed at its November meeting.
The release of US PCE inflation data on Thursday could provide some clues about the size and pace of the US Federal Reserve’s (Fed) interest rate cuts. The headline PCE is expected to have risen by 0.2% MoM in September, while the core PCE is expected to have increased by 0.3% MoM in the same reporting period. A weaker-than-expected reading could fuel expectations of a deeper rate cut and may exert selling pressure on the USD.
Source: FXStreet