GBP/USD stays below 1.3400 as UK borrowing exceeds forecasts in H1

• GBP/USD moves little as traders adopt caution ahead of UK CPI data.
• The Pound Sterling slips as UK government borrowing exceeds expectations by £7.2 billion in the fiscal year's first half.
• Reuters poll indicated that 115 out of 117 economists have predicted that the Fed will reduce interest rates in October.

GBP/USD loses ground for the fourth consecutive session, trading around 1.3380 during the Asian hours on Wednesday. The pair face challenges ahead of the United Kingdom's (UK) Consumer Price Index (CPI) and Retail Price Index data for September.

The Pound Sterling (GBP) weakens as the UK government borrowed £7.2 billion more than expected in the first half of the fiscal year, with the budget deficit rising to £99.8 billion. This exceeded the Office for Budget Responsibility's (OBR) £92.6 billion forecast, as debt interest payments surged 66% to £9.7 billion in September -- the highest on record for the month.

The downside of the GBP/USD pair could be restrained as the US Dollar (USD) struggles amid concerns over a prolonged federal government shutdown and potential delays in key US economic data releases, including Nonfarm Payrolls (NFP), adding uncertainty for financial markets and the Federal Reserve (Fed).

The US government shutdown has entered its fourth week as the Senate on Monday failed for the 11th time to advance a House-passed measure to fund the government and end the ongoing shutdown. The 50-43 vote fell mostly along party lines. This marks the third-longest funding lapse in modern history.

A Reuters poll suggested that 115 out of 117 economists have predicted that the Fed will reduce interest rates by 25 basis points (bps) to 3.75%-4.00% in the monetary policy announcement on October 29. For the year, 83 of 117 economists expect the US Federal Reserve to cut interest rates twice, while 32 anticipate one cut.