Yesterday’s high: $1.3264
Yesterday’s low: $1.3229
Pound Undermined by Underwhelming Borrowing Data
The Pound was unable to hold its best levels against the US Dollar on Tuesday, as the latest UK public sector net borrowing report fell short of market expectations.
Borrowing was forecast to worsen to £-6.6b in October but instead came in at £-7.46b. Excluding banks the figure came in at £-8b.
The data indicates that there is little leeway in UK government funds.
However, GBP/USD was largely able to hold its ground as the US Dollar also lacked the drive to advance against Sterling. A lack of highly influential US data, as well as US tax reform uncertainties, have left the US Dollar limp.
USD Outlook: UK Budget in Focus
Wednesday will see UK Chancellor Philip Hammond deliver the highly anticipated UK Autumn Budget.
Analysts have speculated that Hammond’s Budget could include some relief for UK households, currently struggling under a pay squeeze caused by surging inflation and low wage growth. If the Budget offers little news in terms of fiscal policy though, the Pound could shed some of its recent gains against the US Dollar.
The ‘Greenback’ could also climb on Wednesday evening if US durable goods, jobless claims or Michigan consumer confidence stats beat expectations.
UK Autumn Budget
13:30 US Durable Goods Orders
13:30 US Jobless Claims
15:00 US Michigan Consumer Confidence
19:00 Federal Reserve Minutes
09:30 UK Growth Rate
09:30 UK Business Investment
09:30 UK BBA Mortgage Approvals
14:45 US Markit PMIs
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Senior Currency Broker
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