Pounds moved steady at $ 1.2545 and 89.96 pence against the euro on Wednesday, a day after reaching three-week highs against both currencies, ahead of a move the UK is expected to prevent 'full unemployment crisis.

In his new budget address, at 11:30 GMT, British finance minister Rishi Sunak is expected to put in a fund of 2 billion pounds to create six-month job placement jobs for unemployed people aged 16-24.
Other than that, Sunak is also expected to cut property purchase taxes that can leapfrog the housing market and allocate 3 billion pounds to improve home energy efficiency which will support more than 100,000 jobs.

Jordan Rochester, Nomura's forex strategist, said only reforms that increase fundamental growth, such as changes in Customs and Excise on the property, might have an impact on the British currency, given that forex investors are in a growth mindset.

"This is an event to watch out for but it is not clear if it is a fundamental change in the direction of the currency," Rochester said of the possible impact on the pound, with markets also focused on new Brexit talks this week.

GBP / USD Expectations From Brexit Talks

British and European Union negotiators began talks on Tuesday, with top European Union officials saying he wanted an agreement, "but not at any price".

Talks last week were interrupted with the two sides saying they had not yet overcome the gap in a position that could make Britain leave the status-quo transition period at the end of this year without a trade agreement.

Currently Britain is ready to leave the European Union on the same terms as Australia with the bloc if it cannot agree to a future trade agreement, Prime Minister Boris Johnson told German German Merkel in a telephone call on Tuesday.

The British pound rose ahead of the opening of the European session against the US Dollar to the peak recorded in mid-June yesterday. With an increase this Wednesday (8/7), the pair of US Dollar and GBP extended the advance in the past four days.

One of the main driving factors of the GBP USD is news about the positive expectations of the Brexit talks. Many investors also expect more stimulus from the British government.

But unfortunately, the risk off tone may limit the British Pound rising at this time. Investors will remain wary of EU dislike for British regulators. Today will be a key discussion between the two parties. In addition, news about the speech that will be delivered by Chancellor Rishi Sunak will also move GBP USD.

Corona Virus Pandemic Against GBP USD Movement

In the end, the leadership of the Europe Union Commission had arrived again in London to hold more talks about Brexit. Both parties seemed not to discuss anything at the dinner session last night. Every secret card from both parties is awaited by global investors.

Meanwhile, from another problem, the impetus that brought the British Pound up was news of economic stimulus hopes by the British government. The move was taken to overcome the pandemic which undermined the British economy.

A various stimulus may be issued by the government in almost all sectors of the economy. This is done by the British government to continue to increase pounds against the US Dollar.

The movement of the GBP USD currency pair today will also continue to focus on news about the Corona virus pandemic. In addition, the conflict between Britain and China after the Huawei ban protests will also burden the risk that is hard to bring the pair up.

Currently, economic data is still very quiet so that the dynamics of risk will be a catalyst for driving global financial markets. Because the 10-year US Treasury yield was also unchanged at 0.65%.