Key events today:

11:30 UTC: USD – GDP Volume Change.

The GBP/USD pair weakens around the 1.3010 mark, despite consolidation in the US dollar (USD) during the early European session on Wednesday. Investors await the release of the UK autumn budget, October ADP employment change in the US, and third-quarter gross domestic product (GDP), all expected later on Wednesday.

On Tuesday, the US Bureau of Labor Statistics (BLS) released the Job Openings and Labor Turnover Survey (JOLTS), showing 7.443 million job openings, down from 7.861 million in August (revised from 8.04 million) and below market expectations of 7.99 million. This report may push the Federal Reserve (Fed) towards a more “dovish” rate stance, potentially strengthening the dollar against the British pound (GBP).

The Fed is likely to reduce the key interest rate by 25 basis points (bps) on November 7, according to all 111 economists surveyed by Reuters, with over 90% expecting an additional quarter-point adjustment at the December meeting.

In the UK, the government is set to present the first Labour Party budget in nearly 15 years on Wednesday. UK Chancellor of the Exchequer Rachel Reeves may introduce £40 billion in tax hikes and spending cuts, potentially targeting employer national insurance contributions, capital gains tax, and inheritance tax reliefs.

Analysts at Commerzbank noted that if the budget combines austerity with a focus on long-term investment, “it should be positive for the pound as it strengthens the UK’s long-term growth potential.”

Recommendations: Watch the 1.3000 level. If it holds above this level, consider Buy positions; if it rebounds, consider Sell positions.