Pound Falls Ahead Of U.K. Autumn Budget Statement
30 Oktober 2024 - 8:47AM
RTTF2
The British pound weakened against other major currencies in the
European session on Wednesday, as traders await the U.K. budget
declaration, where the Labour administration is anticipated to
increase taxes and expenditure.
The United Kingdom's (U.K.) Autumn Forecast Statement is set to
be released at 8.30 am ET. Chancellor of the Exchequer Rachel
Reeves is anticipated to announce a tax increase on various
income-generating sources and provide increased spending plans to
encourage investment in what will be Labour's first budget
presentation in more than 15 years.
Investors also expect the Bank of England (BoE) to cut interest
rates by 25 basis points (bps) in its upcoming policy meeting on
November 7.
European stocks traded lower as investors assessed a batch of
mixed earnings and awaited regional growth data as well as the U.K.
government's budget for direction.
In the European trading now, the pound fell to nearly a 2-week
low of 0.8354 against the euro, from an early high of 0.8314. The
pound may test support around the 0.84 area.
Moving away from an early 9-day high of 1.3027 against the U.S.
dollar, the pound dropped to 1.2695. The next possible downside
target for the pound is seen around the 1.28 region.
Against the Swiss franc and the yen, the pound edged down to
1.1243 and 198.27 from early highs of 1.1291 and 199.58,
respectively. If the pound extends its downtrend, it is likely to
find support around 1.11 against the franc and 194.00 against the
yen.
Looking ahead, U.S. MBA weekly mortgage approvals data, U.S. GDP
data for the third quarter, U.S. core price index for the third
quarter, pending home sales data for September and U.S. EIA crude
oil data are slated for release in the New York session.
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