GBPUSD - UK is on the verge of an important economic decisio
The GBPUSD currency pair is located between EMA200 and EMA50 in the 4H timeframe and is moving in its medium-term bullish channel. In case of correction due to the release of today's economic data, we can see demand zone and buy within zone with appropriate risk reward. If the upward trend continues, this currency pair can be sold within the specified supply zones
The UK budget is set to be announced today, Wednesday, October 30, 2024. Analysts at Commerzbank predict that if the budget combines austerity measures with long-term investment optimism, it could positively impact the pound and bolster the UK’s long-term growth potential.
The government faces the challenge of stimulating investment to address years of underfunding in the public sector. The difficulty lies in the fact that the UK has been spending beyond its income in recent years, which has complicated its financial situation.
Meanwhile, prices in UK stores have fallen at their fastest rate in over three years. However, the budget announcement by Finance Minister Rachel Reeves could help inflation rebound. The annual store price index has decreased to 0.8%, marking the weakest level since August 2021. Food prices have risen by 1.9%, and clothing prices have also increased for the first time since January. Data shows that consumer inflation fell to 1.9% in September.
On the other hand, in the U.S., Professor Jeremy Siegel from the Wharton School believes the Federal Reserve may choose to hold rates steady next week if the October non-farm payroll (NFP) report proves very strong. Siegel notes that if the labor market report is robust, many FOMC members may conclude that it’s time to pause. He also predicts that the rate-cutting cycle will include three to four rate reductions, but long-term rates are likely to remain high. In August, Siegel advocated for an emergency 75 basis-point rate cut by the Fed.
The UK budget is set to be announced today, Wednesday, October 30, 2024. Analysts at Commerzbank predict that if the budget combines austerity measures with long-term investment optimism, it could positively impact the pound and bolster the UK’s long-term growth potential.
The government faces the challenge of stimulating investment to address years of underfunding in the public sector. The difficulty lies in the fact that the UK has been spending beyond its income in recent years, which has complicated its financial situation.
Meanwhile, prices in UK stores have fallen at their fastest rate in over three years. However, the budget announcement by Finance Minister Rachel Reeves could help inflation rebound. The annual store price index has decreased to 0.8%, marking the weakest level since August 2021. Food prices have risen by 1.9%, and clothing prices have also increased for the first time since January. Data shows that consumer inflation fell to 1.9% in September.
On the other hand, in the U.S., Professor Jeremy Siegel from the Wharton School believes the Federal Reserve may choose to hold rates steady next week if the October non-farm payroll (NFP) report proves very strong. Siegel notes that if the labor market report is robust, many FOMC members may conclude that it’s time to pause. He also predicts that the rate-cutting cycle will include three to four rate reductions, but long-term rates are likely to remain high. In August, Siegel advocated for an emergency 75 basis-point rate cut by the Fed.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.