GBP/USD weakens to near 1.3150 as BoE rate cut expectations grow on weak UK data
The post GBP/USD weakens to near 1.3150 as BoE rate cut expectations grow on weak UK data appeared on BitcoinEthereumNews.com.
The GBP/USD pair declines to near 1.3155 during the early Asian session on Monday. The Pound Sterling (GBP) softens against the US Dollar (USD) amid concerns about the UK’s fiscal debt and weak economic data from the UK. Bank of England (BoE) External Member Catherine Mann is set to speak later on Monday. The pound loses ground after a report that UK Prime Minister Keir Starmer and Finance Minister Rachel Reeves have dropped the plan to raise income tax rates, in a dramatic turn ahead of the budget on November 26. Additionally, the recent UK economic data, including cooling wage growth and weaker Gross Domestic Product (GDP) data, have prompted further economic concerns and fueled bets on a December rate cut from the BoE. This, in turn, could weigh on the GBP in the near term. Bets for a 0.25 percentage point cut have surged to near 80% probability, according to Reuters. On the other hand, traders brace for a backlog of US data following the government’s reopening, which they expect will likely point to a weakening economy. This might drag the Greenback lower and create the tailwind for the major pair. Financial markets are now pricing in nearly a 54% chance that the US central bank will cut its benchmark overnight borrowing rate by 25 basis points (bps) at its December meeting, down from a 62.9% probability that markets priced in earlier last week, according to the CME FedWatch Tool. Pound Sterling FAQs The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD,…
