GBPUSD:
On Thursday, during the Asian trading session, the GBP/USD pair fell to around 1.3430. The pound sterling (GBP) is weakening against the US dollar (USD) amid concerns about the UK’s financial situation.
UK Finance Minister Rachel Reeves said on Wednesday that she would present the annual budget on November 26, insisting that the economy is not “broken” and that she would control spending to help reduce inflation and borrowing costs. However, concerns about the UK’s ability to control its finances are weighing on sentiment and dragging the pound down against the US dollar.
According to the US Bureau of Labor Statistics (BLS), the number of job openings on the last working day of July was 7.181 million. This figure followed 7.357 million (revised from 7.437 million) job openings recorded in June and was below the market consensus of 7.4 million.
The weakening of the UK labor market, announced on Wednesday, reinforced expectations that the Federal Reserve (Fed) will cut rates this month. This, in turn, could undermine the dollar and help limit losses for the major currency pair.
Trading recommendation: SELL 1.3400, SL 1.3450, TP 1.3300
Origin: FreshForex
