GBPUSD set to drop under the 1.15 level .

The Pound survived the Autumn Statement, but downside risks persist in GBPUSD, economists at ING report.

EURGBP could rise to 0.89 by year-end

“The Pound survived the much-feared Autumn Statement by Chancellor Jeremy Hunt. Ultimately, the impact on next year’s growth should not prove huge, especially compared to expectations. The tax hike will only affect high incomes and energy companies, and the National Insurance cut by the previous government has not been reversed.”

“We think it is too early to call for a prolonged stabilisation in the Gilt market, and our debt team notes that there is still a lot of extra supply for private investors to absorb.”

“We continue to see downside risks for GBPUSD as the Dollar may start to recover into year-end, and target sub-1.15 levels in the near term. However, we forecast some outperformance in EURGBP (primarily due to EUR weakness), which could rise to 0.89 by year-end.”

EURUSD holds steady above 1.0350 as US Dollar struggles

EURUSD is defending early gains above 1.0350 in the European session. The pair fails to find support from ECB Chief Lagarde’s comments while the US Dollar struggles alongside the Treasury yields amidst hawkish Fedspeak amid China’s reopening optimism. 


GBPUSD jumps to 1.1950 amid renewed US Dollar selling

GBPUSD is extending gains above 1.1900, as the US Dollar comes under fresh selling pressure. Investors reassess the UK’s fiscal plan on the last trading day of the week. Meanwhile, the data from the UK revealed that Retail Sales rose by 0.6% in October.


Gold price defends gains above $1,760 ahead of US data

Gold price is posting small gains while holding the fort above $1,760, as the US dollar fluctuates between gains and losses amid a risk-on market profile. The renewed uptick in the US Treasury yields checks the upside in the bright metal ahead of the US housing data. 

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