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by The British pound has dipped below $1.31, marking its lowest point in roughly a month. This drop follows the release of new labor data from the U.K., suggesting that the Bank of England might reduce interest rates further, with potential cuts expected next month.
The GBP/USD 4-hour chart below demonstrates the price, support, and resistance levels.
GBPUSD Fundamental Analysis – 15-October-2024
UK Wage Growth Hits Two-Year Low
Recent statistics show a continued slowdown in wage increases, reaching the lowest rate in two years for the period ending in August. This trend indicates diminishing wage pressures within the U.K. economy, signaling less inflationary stress.
Inflation figures and retail sales data are anticipated this week. These reports will illuminate ongoing price fluctuations and the robustness of consumer spending, which are crucial for economic assessments.
Investors Await Key 2025 U.K. Budget Details
Investors are keenly awaiting the 2025 Budget announcement, which is scheduled for later this month. This event is critical as it will outline forthcoming government fiscal policies and tax regulations vital for economic planning.
The pound also feels the impact of a stronger dollar, driven by expectations that the U.S. Federal Reserve will slow down its rate cuts more than initially anticipated, influencing global currency markets.
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