GBPUSD extends slide to 1.1760 after UK budget and US data.

Pound among worst performers in G10 space after Autumn budget.US Dollar remains strong despite mixed US economic data.

GBPUSD trims weekly gains on Thursday, and backs away from three-month highs.

The GBPUSD pair dropped further during the American session and bottomed at 1.1760. It then trimmed losses rising back toward 1.1800. It is losing more than a hundred pips on Thursdays, after US data and UK’s budget presentation.

Pound falls after Autumn Budget

On Thursday in the United Kingdom, Chancellor of the Exchequer, Jeremy Hunt presented the Autumn Statement, the budget of the Primer Minister Rishi Sunak. The budget was largely as expected by analysts. Hunt presented an increase in taxes of £55 billion and spending cuts in order to restore the UK’s fiscal reputation after a chaotic September and October.

 “The UK government announced the largest tax increases and spending cuts in a decade, becoming the first major Western economy to start sharply limiting its spending growth after years of ramped-up fiscal stimulus during the pandemic and recent energy subsidies,” reported the WSJ. The pound hit fresh daily lows across the board during the presentation but falling at a moderate pace.

Dollar holds its strength after US data

Economic data from the US showed an unexpected decline in the Philly Fed to -19.4 in November from -8.7. Continuing Jobless Claims rose to the highest level since April. Housing Starts and Building Permits dropped less-than-expected. The US Dollar initially dropped after the reports, trimming gains but after a few minutes it resumed the upside, hitting fresh daily highs.

The DXY is hovering around 107.00, up 0.69% for the day. US yields are higher with the US 10-year bond yield at 3.79% and the 2-year note at 4.44%.GBPUSD upside limited while under 1.1950

For the third consecutive day, GBPUSD failed to hold above 1.1950 and pulled back. The Pound needs to post a daily close above to open the doors for a recovery of 1.20 and beyond. The next critical target is the 200-day Simple Moving Average at 1.2240.

If the ongoing correction extends, the area around 1.1740, at the level of the September highs, emerges as a strong support that could favor a rebound. 1.1740 is in many ways a key inflection point for the longer-term trend as the break above represented a fundamental turning point in changing the technical outlook from long-term bearish to potentially bullish. Below that level comes support at 1.1640; and a slide below there would target the 20-day SMA at 1.1560.

EURUSD holds above 1.0300 in volatile day

EURUSD managed to stage a rebound after dropping toward 1.0300 earlier in the day but struggled to gather momentum. With the US Dollar continuing to benefit from safe-haven flows in the second half of the day, the pair remains on track to post daily losses.

EUR/USD News 

GBPUSD falls to fresh daily low below 1.1800

GBPUSD came under renewed bearish pressure and dropped below 1.1800 on Thursday. While presenting the budget, UK Chancellor Hunt unveiled £55 billion in tax hikes and spending cuts. Meanwhile, the US Dollar gathers strength amid risk aversion.

GBPUSD News 

Gold’s corrective decline underway, support at around $1,750

Gold is down for a second consecutive day, nearing the weekly low posted. The American Dollar has been rising since the day started, gathering additional momentum early in the US session as Treasury bond yields ticked north. 

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