Investing.com – The pound advanced to a fresh daily high against the U.S. dollar on Wednesday, after U.K. Chancellor George Osborne unveiled spending cuts worth GBP 80 billion aimed at reducing the country’s record budget deficit.
GBP/USD hit 1.5768 during European afternoon trade, a daily high; the pair subsequently consolidated at 1.5748, gaining 0.27%.
Cable was likely to find support at 1.5601, the low of September 22 and resistance at 1.6002, Monday’s high.
Earlier in the day, Osborne said that the state pension age for men and women will rise to 66 by 2020. He also cut an additional GBP 7 billion off the welfare budget on top of the GBP 11 billion of reductions he identified in June’s budget. The cuts will result in the loss of around 490,000 public sector jobs over the next four years.
In his address to parliament Osborne said, "Tackling this budget deficit is unavoidable. The decisions about how we do it are not. There are choices. And today we make them. Investment in the future rather than the bills of past failure. That is our choice."
Britain’s budget deficit currently stands at 11% of GDP, the highest in the G7 group of industrialized nations.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.59% to hit 0.8792.
Later in the day, the Federal Reserve was to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.
GBP/USD hit 1.5768 during European afternoon trade, a daily high; the pair subsequently consolidated at 1.5748, gaining 0.27%.
Cable was likely to find support at 1.5601, the low of September 22 and resistance at 1.6002, Monday’s high.
Earlier in the day, Osborne said that the state pension age for men and women will rise to 66 by 2020. He also cut an additional GBP 7 billion off the welfare budget on top of the GBP 11 billion of reductions he identified in June’s budget. The cuts will result in the loss of around 490,000 public sector jobs over the next four years.
In his address to parliament Osborne said, "Tackling this budget deficit is unavoidable. The decisions about how we do it are not. There are choices. And today we make them. Investment in the future rather than the bills of past failure. That is our choice."
Britain’s budget deficit currently stands at 11% of GDP, the highest in the G7 group of industrialized nations.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.59% to hit 0.8792.
Later in the day, the Federal Reserve was to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.