GBP/USD Forecast: Pound Sterling turns bullish, eyes on UK budget
GBP/USD continues to edge higher and trades above 1.2700 after closing the third consecutive trading day in positive territory on Tuesday. The pair’s near-term technical outlook points to a bullish tilt as investors await the UK budget and Federal Reserve (Fed) Chairman Jerome Powell’s testimony.
UK Chancellor of the Exchequer Jeremy Hunt will present the Spring Budget on Wednesday. Hunt it expected to announce expansionary fiscal measures, including tax cuts. Although it’s too early to say, expansionary measures could make the Bank of England’s (BoE) job of taming inflation more difficult. Markets could see tax cuts as potentially being inflationary and start pricing in a delay in the BoE policy pivot, supporting the Pound Sterling. Read more…
Pound Sterling strengthens ahead of UK Spring Budget for fresh guidance
The Pound Sterling (GBP) strengthens slightly against the US Dollar in Wednesday’s European session ahead of the United Kingdom’s 2024 budget statement by the Chancellor of the Exchequer Jeremy Hunt. Investors will keenly watch the scope of fiscal stimulus as it could drastically impact the outlook on inflation and the interest rate outlook by the Bank of England (BoE).
Jeremy Hunt, who will present the budget from 12:30 GMT, needs to make a balancing act between measures to keep inflation at bay and cheering the public through tax cuts, with general elections expected later this year. Read more…
GBP/USD to press strong resistance at 1.2800/1.2825 – ING
Today sees UK Chancellor, Jeremy Hunt, present a pre-election budget. The Pound Sterling (GBP) is the only G10 currency to print positive total returns against the US Dollar (USD) this year. An expansionary UK budget would support the GBP, economists at ING say.
Some decent fiscal stimulus should only delay the Bank of England easing cycle (we currently pencil in August for the first cut) and support Sterling. Read more…
