Sterling regains swagger after softer than expected US payroll data
GBP/USD regained its footing after a whippy few days which saw the pound fall from high of 1.3043 to Thursday's low at 1.2845, the bid aided by rising gilt yields and today's soft payrolls release which may prod cable to re-test recent highs as we head into U.S. elections on November 5.
Thursday's GBP/USD slide, though short-lived, may provide a clue as to which way traders are leaning. The UK budget, with its softening economic overtones given higher taxes and spending cuts, was the primary catalyst for recent GBP weakness.
While GBP longs exited the market, the quick return was based on fundamentals.
The rise in gilt yields pushed down expectations for UK rate cuts and the widening rate differentials between the UK and other trading partners primarily the U.S., EZ and Japan should support GBP strength.
The prudent budget, addressing some of the COVID-era excesses should also be a boon for GBP/USD, as it indicates leadership is keeping an eye on the overall health, and future, of the UK economy rather than a quick fix to stimulate growth.
The upcoming U.S. elections remain a wildcard, but UK rates and policy should support sterling near current levels. Though with the BoE slated to cut near 100bps by year-end 2025 a rise above the 2024 high by 1.3434 is likely not in the cards given current U.S.-UK rate expectations.
For more click on FXBUZ
GBP Chart: https://tmsnrt.rs/4hFC01k
(Paul Spirgel is a Reuters market analyst. The views expressed are his own)
</body></html>
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
