Pound Sterling in tight range with UK budget in focus

The Pound Sterling trades in a tight range near 1.2950 against the US Dollar ahead of a string of US economic data.

Investors will pay close attention to US NFP for October and Q3 GDP.

The UK budget and market speculation for the BoE interest rate path will influence the Pound Sterling.

The Pound Sterling (GBP) consolidates in a tight range near 1.2950 against the US Dollar (USD) in Monday’s London session. The GBP/USD pair trades sideways, with investors focusing on a slew of United States (US) economic data this week and the United Kingdom (UK) Autumn Forecast Statement, which will be announced on Wednesday.

The US Dollar Index (USD), which gauges Greenback’s value against six major currencies, revisits an almost three-month high at around 104.60 on Monday.

Investors will pay close attention to the US preliminary Q3 Gross Domestic Product (GDP) and the Nonfarm Payrolls (NFP) data for October, which will exhibit the current status of economic growth and labor demand, respectively. The economic data will significantly influence market speculation regarding the Federal Reserve (Fed) interest rate outlook for the remaining year.

The Fed started its policy-easing cycle with a larger-than-usual interest rate cut of 50 basis points (bps) in September as officials were worried about growing economic risks, with confidence over inflationary pressures remaining on track to the bank’s target of 2%.