Pound US dollar (GBP/USD) exchange rate rangebound ahead of US data
The pound US dollar (GBP/USD) exchange rate is trapped in a narrow range this morning as markets await the publication of some high-impact US data during the second half of today’s European session.
At the time of writing, GBP/USD is trading at around $1.2985, virtually unchanged from this morning’s opening levels.
US dollar (USD) rangebound ahead of jobs data
The US dollar (USD) is treading water against the majority of its peers this morning as investors await the publication of the latest US Job Openings and Labor Turnover survey (JOLTs).
Scheduled for release this afternoon, the latest JOLTs survey is forecast to report the number of job openings only marginally dipped last month, down from Augusts’ forecast beating score.
Should the data continue to print close to the robust levels reached in August, or indeed come in ahead of forecasts once again, the ‘greenback’ could firm against its peers during the second half of the day.
Pound (GBP) quiet ahead of UK Budget
The pound (GBP) is trading sideways against the majority of its peers this morning as an absence of UK sees the pound remain mostly flat.
GBP investors are also likely reluctant to place any overly aggressive bets on Sterling ahead of tomorrow’s publication of the UK’s long-awaited Autumn Budget.
As the Chancellor reveals her forthcoming fiscal plans, will an expected slew of tax cuts hobble GBP exchange rates? Or will the Chancellor’s plans to boost investment and ‘rebuild Britain’ see the pound surge?
GBP/USD exchange rate forecast: UK Budget in the spotlight
Looking ahead, the primary catalyst of movement for the pound US dollar exchange rate looking at tomorrow will undoubtedly be the UK’s upcoming Autumn Budget.
GBP exchange rates could experience significant volatility in the wake of the publication should the UK Chancellor fail to convince markets of the merits of her financial plans.
However, should Rachel Reeves’ plans to ‘boost UK growth’ be met with optimism, Sterling sentiment will likely be buoyed.
Turning to the US dollar, USD investors will also be awaiting the publication of some significant domestic data.
The US will release its advanced GDP reading for the third quarter of the year, which is forecast to print in line with market expectations and come in at 3%.
Should the data print as expected and confirm robust growth levels in 2024’s third quarter, this could underpin the ‘greenback’ following the release.
However, should the data deviate from expectations and report a slower-than-expected pace of growth in Q3, USD exchange rates could experience fresh headwinds.