- Cable gathers traction and advances to daily tops near 1.2850.
- A better tone in the riskier assets pushes spot higher.
- UK’s Autumn Budget next of relevance in the docket.
The better tone in the risk-associated complex is helping the Sterling to gather further ground and pushes GBP/USD to daily highs in the mid-1.2800s.
GBP/USD looks to Autumn Budget
In addition, Cable is deriving extra support from the up move in GBP/JPY following the increasing selling bias in the Japanese Yen.
The absence of fresh headlines around Brexit appears to have been also sustaining the demand for the British Pound so far while market participants are expected to shift their attention to the upcoming Autumn Budget.
All eyes will then be on Chancellor P.Hammond later today, when he is expected to present the Autumn Budget against the ongoing uncertainty surrounding the Brexit negotiations. Among the salient points at today’s Budget are the ‘end of austerity’ advocated by PM T.May at the recent Conservative Party conference, fuel duty, pension tax relief and income tax U-turn.
In addition, and on the USD-side, the release of the PCE and Personal Income/Spending will be in the limelight later in the NA session.
GBP/USD levels to consider
As of writing, the pair is gaining 0.11% at 1.2845 and a breakout of 1.2921 (low Oct.4) would open the door to 1.2971 (10-day SMA) and finally to 1.3038 (21-day SMA). On the downside, the next support aligns at 1.2777 (low Oct.26) seconded by 1.2662 (2018 low Aug.15) and finally 1.2591 (monthly low Jun.21 2017).
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