Sterling recovers some of Wednesday's losses
The pound lost ground on Wednesday as the Chancellor of the Exchequer was delivering his autumn statement.
The GBP
Like the FTSE 100, the GBP lost ground on Wednesday as the Chancellor of the Exchequer was delivering his autumn statement. New projections from the Office for Budget Responsibility (OBR) predict the UK economy will grow slower than previously thought for the next three years. According to the OBR, UK gross domestic product (GDP) will grow by 0.6% this year, having previously predicted a decline, before growing slower than earlier forecasts between 2024 and 2026.
S&P Global CIPS
The market awaits the Purchasing Managers Index (PMI) data in the UK and Eurozone on Thursdaymorning. Not one measure in the UK, Germany, France, or the eurozone as a whole is expected to rise above 50 in November. In the UK, S&P Global CIPS manufacturing PMI has remained below 50 for the past 15 months and services PM for the last three months. US PMI data will be released on Friday.
OPEC+
The Organization of the Petroleum Exporting Countries (OPEC+) has decided to delay the ministerial meeting that was originally due on Sunday, sending oil prices down. According to sources, oil producers struggled to agree on production levels and therefore had to push back the meeting to November 30. Several analysts have predicted that OPEC+ is likely to extendor even deepen oil supply cuts into next year. Members have already pledged oil output cuts of about 5 million barrels per day (bpd), or about 5% of daily global demand, in a series of steps that started in late2022. This figure includes a 1 million bpd voluntary reduction by Saudi Arabia and a 300,000 bpd cut in Russian oil exports, both of which last until the end of 2023.
U.S. crude oil
U.S. crude oil inventories rose last week on higher imports, by 8.7 million barrels. Gasoline stocks rose by 750,000 barrels, while distillate stockpiles fell by 1.02 million barrels. Baker Hughes, exceptionally, released its weekly data on Wednesday evening. The total rig count rose by four to 622. A rise entirely due to the number of gas rigs in operation, as oil rigs remained unchanged at 500. The total count is still 162, or 21%, below this time last year.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.