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GBP/USD unable to react to positive autumn statement as dollar lifts

The UK budget is done and dusted now and in truth it was good. However, the one caveat to that is the impact it has had on the latest Gilt issuance from the DMO. They have now upped that borrowing demand for the coming year by around £13 billion and that has pushed Gilt yields higher. Now you might have expected that to support the pound and perhaps it will in due course. However, the rebound unfolding in the dollar right now has extended and once again and it is the USD/JPY that is leading the way, as the dollar rises back to session highs once more. The lower than expected US weekly claims data is entirely responsible for that and the gains in the USD/JPY has pushed the EUR/USD and GBP/USD down to fresh session lows. That has now delivered a drop to below 1.25 in the GBP/USD. I repeat what I said about the UK budget and I think it was better than anyone expected. Nonetheless the pound is falling under the weight of a resurgent dollar right now. The GBP/USD is currently trading at 1.2478
 

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