GBP/USD Extended Declines For A Fourth Day, Trading Around 1.3290 In Asian Hours On Wednesday As Markets Awaited UK Finance Minister John Healey’s First Budget. Policy Scope Appears Limited By Higher Government Borrowing Costs And The Tax Rises Already Enacted Under Predecessor Rachel Reeves, Leaving Fiscal Choices Tightly Bounded.
Dollar Strength And Central Bank Outlook
The pair softened as the US Dollar gained ahead of the Federal Reserve decision and a run of US data, including GDP and the PCE price index. The Fed is expected to hold rates at 3.75% to 4.0%; CME FedWatch shows a 92.8% probability of no change, while the implied chance of a December hike is 84.4%. Separately, demand for safe-haven Treasuries has eased as sentiment around artificial intelligence improves, with forthcoming results from major technology companies in focus after a global tech sell-off.
Technical Indicators And Market Sentiment
On the chart, spot remains below the nine-day EMA at 1.3323 and the 50-day EMA at 1.3351, while a 14-day RSI near 46 points to waning, but not oversold, bearish momentum.
