The sterling pound (GBP) fell, along with the Gilts, before signs of division within the Labor Party. The GBP was last placed at levels of 1,3671, the FX analysts of OCBC Frances Cheung and Christopher Wong point out.
The risks remain somewhat biased down
“A total of 49 rebel deputies of labor voted against the second reading of the Welfare Reform Law, basically to eliminate cuts to welfare spending. To avoid the defeat of the project, the PM Starmer was forced to take a 180 degree turn, saying that it would not change the rules of the payment of personal independence (PIP) until it had time to consider the conclusions of the review.”
“This exerts pressure on the expenditure plans of Foreign Minister Reeves, since the possible savings of around 5,000 million pounds will now be delayed or losing completely. There were also rumors that Reeves could lose their work as a chancellor, although the PM Starmer later said to the BBC that Reeves would remain in office ‘For a long time’.”
“The upward impulse in the daily graph is fading while the RSI fell. The risks remain somewhat biased down, although we notice that much of the corrective movement has already taken place (in line with our caution of the FX Weekly). The next support is in 1,3580 (SMA of 21 days), 1,3470 (SMA of 50 days). Resistance in 1,3690, 1,3750 levels. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
