GBP/USD Falls Under Price Level 1.1200, as UK Reverses Tax Cut

 

The GBP/USD pair is retreated from its seven days height during the early European Session. The Pound bull evaluated the United Kingdom’s decision to retract scrapping higher income tax rate cut.

The ever-increasing energy problems have had a negatively affected the sentiments of families in the United Kingdom. Besides that, leaping price forces, poor economic fundamentals, as well as inability to produce good job opportunities have produced problems for policymakers in BOE. Yet, despite the activities of downward forces, the United Kingdom recorded an improved Gross Domestic Product data.

More Economic Development Affecting GBP/USD Price

At the same time, the bond purchasing program which was organized by the Bank of England to stabilize the money market is canceling the effect of hawkish monetary policies to some extent. Also, the United States dollar index is anticipated to fall under the closest base of 112.00. This, however, is on a lower agreement for the United States production PMI data.

Going by the predictions, the United States ISM Production data will be published at 52.30 against the previous 52.8. Increasing interest rates by the Fed is aimed at providing stability to the economy. This has pushed the Corporate to retract their growth and investment strategies. Additionally, the United States ISM New Order Index PMI data will significantly reduce to 49.60 against the previous 51.30. And this will affect the USD, and subsequently the GBP/USD.

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