In a few hours, UK Prime Minister Jeremy Hunt will unveil the much-anticipated fall budget.
Will the release take EUR/GBP out of the near-term range?
Before moving on, ICYMI’s watchlist yesterday focused on the GBP/AUD triangle consolidation after the UK’s latest CPI report. Check if it’s still a valid play!
And here are the headlines that rocked the market in the last trading session:
Fresh market headlines and economic data:
OPEC ready to intervene ‘for the benefit of oil markets’
Federal Reserve’s Daily sees interest rates rise at least another percentage point as ‘suspension is off the table’
JPMorgan sees ‘mild’ US recession in 2023 with Fed rate hike
Crypto exchange Gemini suffers $485 million outflow amid contagion fears
Australia’s unemployment rate unexpectedly fell to 3.4% from 3.5% in October
AU adds a net 32.2K jobs.Expected to add vs. 15K
New Zealand producer inflation slows to 0.8% q/q in Q3-2022 from 3.1%
Oil falls on easing geopolitical tensions, China demand worries
PBOC warns inflation could accelerate, with little room to ease further
Japan’s trade deficit rises for 15th straight month, longest growth since 2015
UK Treasury unveils new financial plan today
Eurozone final CPI at 10am GMT
FOMC member Bullard to speak at 1pm GMT
Philly Fed Manufacturing Index at 1:30 p.m. GMT
First U.S. Unemployment Claims as of 1:30 p.m. GMT
US housing starts and building permits at 1:30 p.m. GMT
FOMC member Bowman to speak at 2:15 p.m. GMT
FOMC member Mester will speak at 2:40 p.m.
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What to see: Euro/British Pound
UK Prime Minister Jeremy Hunt is set to unveil the government’s latest financial plan today.
Rumor has it Hunt needs to raise at least £60bn and his office is looking at a combination of public spending cuts and tax increases to do so.
Attention will be focused on where and how much public funds will be cut, as well as the scope and schedule of tax increases and tax base suspensions.
Budget plans leading to lower economic growth could weigh the pound against the euro.
This is good news for the EUR/GBP bulls who are already eyeing the short-term range support at .8700 and the Stochastic oversold signal on the 1-time frame.
An anti-GBP theme could push EUR/GBP to the .8760 midrange level or the .8820 range resistance zone.
Meanwhile, a report in favor of the GBP could break the EUR/GBP out of its multi-week range.
Confidence in government plans could drag EUR/GBP to the .8650 inflection point, if not the .8600 area of interest.
Keep a close eye on EUR/GBP short-term levels and see if you can seize short-term opportunities!