- GBP/USD softens to near 1.3430 in Thursday’s Asian session.
- The UK government will hold the annual budget on November 26.
- The softer-than-expected job openings data supported investor expectations of a Fed rate cut.
The GBP/USD pair declines to around 1.3430 during the Asian trading hours on Thursday. The Pound Sterling (GBP) weakens against the US Dollar (USD) amid UK fiscal worries. The US weekly Initial Jobless Claims, the ADP Employment Change and the ISM Services Purchasing Managers Index (PMI) are the highlights later on Thursday.
UK Finance Minister Rachel Reeves said on Wednesday that she would deliver her annual budget on November 26, insisting the economy was not “broken” and that she would keep a grip on spending to help lower inflation and borrowing costs, per Reuters. However, concerns about the UK’s ability to keep its finances under control weigh on the sentiment and drag the Cable lower against the USD.
The number of job openings on the last business day of July stood at 7.181 million, according to the US Bureau of Labor Statistics (BLS). This figure followed the 7.357 million (revised from 7.437 million) openings recorded in June and came in below the market consensus of 7.4 million.
Weaker UK labor market released on Wednesday reinforced expectations the Federal Reserve (Fed) will cut rates this month. This, in turn, might undermine the Greenback and help limit the major pair’s losses. Traders are now pricing in about 97% odds of the Fed cutting interest rates later this month, up from 91% a week earlier, CME FedWatch showed. They are also pricing in 139 basis points (bps) of reductions by the end of next year.
