Pound Sterling rises as higher UK inflation forecasts reduce BoE rate cut bets

GBPUSD News

Pound Sterling rises as higher UK inflation forecasts reduce BoE rate cut bets
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The Pound Sterling (GBP) outperforms its majority of peers on Thursday as traders have pared back bets that the Bank of England (BoE) will cut interest rates aggressively after the United Kingdom (UK) Labour government announced its first Autumn Forecast Statement on Wednesday.

The Pound Sterling rises against its major peers after the UK budget announcement. Traders pare back BoE interest-rate cut bets due to upwardly revised inflation forecasts. In the US, investors expect the NFP report to show lower labor demand in October.

The core PCE inflation, which is the Fed’s preferred inflation gauge, is estimated to have grown by 2.6%, down from 2.7% in August. Technical Analysis: Pound Sterling struggles near 1.3000 The Pound Sterling struggles to break above 1.3000 decisively against the US Dollar. The near-term trend of the GBP/USD pair remains uncertain as it stays below the 50-day Exponential Moving Average , which trades around 1.3060.

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