Pound Sterling flattens for second consecutive day as UK budget takes centre stage

The Pound Sterling consolidates below 1.3000 against the US Dollar ahead of a US data-heavy week and the UK’s Autumn Forecast Statement.

UK Chancellor Rachel Reeves is expected to announce massive funding for the health service sector.

Investors await the US JOLTS Job Openings data for fresh guidance on labor demand.

The Pound Sterling (GBP) trades in a tight range below the psychological resistance of 1.3000 against the US Dollar (USD) in Tuesday’s London session. The GBP/USD pair consolidates as investors await a slew of United States (US) economic data, which will provide cues about the direction of the Federal Reserve’s (Fed) monetary policy by the year-end.

This week, investors will mainly focus on the first estimate of the Q3 Gross Domestic Product (GDP), the Personal Consumption Expenditure Price Index (PCE), the Nonfarm Payrolls (NFP), and the ISM Manufacturing Purchasing Managers’ Index (PMI) data to understand the current status of economic growth and inflation.

Meanwhile, recent commentaries from an array of Fed officials have shown that they are more worried about downside risks to economic growth, with firm confidence that inflation remains on track toward the bank’s target of 2%.

If the data to be published later this week show signs of robust economic expansion and upbeat labor demand, bets that the Fed will cut interest rates sharply will diminish. On the contrary, Fed rate cut bets would strengthen if the data points to slower growth and a weak job market.