GBP/USD has been fluctuating around the 1.13 area today. Economists at Rabobank have been bearish on the pound for many months and believe that there is still too much uncertainty in both the UK economic and political outlooks to turn constructive on the outlook for GBP.UK fundamentals are still sour
“Hawkish remarks from BoE Governor Bailey over the weekend confirm that the BoE is preparing to raise rates aggressively going forward. This will lend some support to the pound, though higher rates combined with the reversal of Truss’ tax pledges, underpins the recessionary outlook for the UK.”
“Aside from awakening a few bargain-hunters, the calamitous events of the past few weeks will not have done anything to tackle the lack of investment growth that has been evident in the UK in recent years, nor will it have impacted the wide current account deficit.”“Our three-month forecast of 1.06 appears a little further away than it did a few days ago. Even so, we have not yet seen enough good news to revise this higher.”
GBP/USD flirts with 1.1400 on UK’s Hunt fiscal U-turn
The Pound is the best performer Monday, as investors assess UK Chancellor Hunt’s fiscal statement. Hunt reversed almost all tax measures announced on Sept 23. As the US dollar stays on the back foot, GBP/USD at fresh 2-week highs.
GBP/USD News
EUR/USD rallies beyond 0.9800 as the USD keeps losing ground
EUR/USD trades above 0.9800, its higher in over a week as investors move away from safe-haven assets. Wall Street’s substantial gains and easing government bond yields play against the American currency at the beginning of the week.
EUR/USD News
Gold extends recovery toward $1,670
Gold is rising on Monday, recovering from the two-week low it hit on Friday. A weaker dollar and risk appetite offers support to the metal. US yields off lows, limiting upside in XAU/USD.
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