In a few hours UK Chancellor Jeremy Hunt will unveil his long-awaited Autumn budget statement.
Will the release bust EUR/GBP out of its short-term range?
Before moving on, ICYMI, yesterday’s watchlist looked at GBP/AUD’s triangle consolidation after the U.K.’s latest CPI reports. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
OPEC ready to intervene “for the benefit of oil markets”
Fed’s Daly sees rates rising at least another percentage point as ‘pausing is off the table’
JPMorgan sees ‘mild’ us recession in 2023 on Fed’s rate hikes
Crypto exchange Gemini suffers $485M rush of outflows amid contagion fears
AU jobless rate unexpectedly edged down from 3.5% to 3.4% in October
AU adds net 32.2K jobs vs. 15K addition expected
NZ producer inflation slows down from 3.1% to 0.8% q/q in Q3 2022
Oil falls on easing geopolitical tensions, China demand worries
PBOC warns inflation may accelerate, leaving little room for more easing
Japan’s trade deficit higher for a 15th straight month, the longest stretch since 2015
U.K.’s Treasury office to unveil new fiscal plans today
Eurozone’s final CPI at 10:00 am GMT
FOMC member Bullard to give a speech at 1:00 pm GMT
Philly Fed manufacturing index at 1:30 pm GMT
U.S. initial jobless claims at 1:30 pm GMT
U.S. housing starts and building permits at 1:30 pm GMT
FOMC member Bowman to give a speech at 2:15 pm GMT
FOMC member Mester to give a speech at 2:40 pm GMT
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What to Watch: EUR/GBP
EUR/GBP 1-hour Forex Chart
Later today U.K. Chancellor Jeremy Hunt will publish the government’s latest fiscal plans.
Word around is that Hunt will need to raise at least £60B and his office is looking at a combo of public spending cuts and tax increases to do it.
Eyes will be on how deep and where public funds will be cut, as well as the coverage and schedule of any tax hikes or pausing of tax thresholds.
A budget plan that will lead to lower economic growth could weigh on GBP against EUR.
This would be good news for EUR/GBP bulls who are already eyeing a short-term range support at .8700 and Stochastic‘s oversold signal on the 1-hour time frame.
An anti-GBP theme could boost EUR/GBP to the .8760 mid-range levels or even the .8820 range resistance zone.
A GBP-friendly report, on the other hand, could bust EUR/GBP from its weeks-long range.
Confidence in the government’s plans could drag EUR/GBP to the .8650 inflection point if not the .8600 area of interest.
Watch EUR/GBP’s short-term levels closely to see if you can catch any short-term opportunity!