US inflation figures are next for a Pound back above 1.33
GBP/USD's first gain in four sessions came from a weaker Dollar after the Fed's hold, and Chancellor Healey's first Budget had little to do with it. The pair's session low, just above 1.3250 and its lowest since mid-October, came well before the Budget speech.
In the latest data release, the Pound Sterling experienced a slight uplift against the US Dollar, reaching a session high just above 1.3300. This gain followed a weaker Dollar after the Federal Reserve's decision to maintain interest rates between 3.75% and 4.00%. The Office for Budget Responsibility (OBR) estimates Chancellor Jeremy Healey has £15 billion of headroom for 2029-30, down from £24 billion in March, despite new taxes on banks and gambling.
The 10-year gilt yield fell amid the Budget, with the OBR forecasting about £14 billion of extra debt interest this year. The Pound Sterling is the fourth most traded currency in foreign exchange markets, accounting for 12% of all transactions, averaging $630 billion daily. The Bank of England (BoE) decision on the UK's Bank Rate, expected on November 5, will be the next major event impacting the Pound.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
