GBP/USD holds near 1.3160 as traders wait for NFP and UK CPI

• GBP/USD steady as traders assess US labor data and brace for Thursday's Nonfarm Payrolls report.
• Fed cut odds rise to 55% as market jitters build ahead of key NVIDIA AI-sector earnings.
• UK CPI and November 26 Autumn Budget in focus, with markets pricing 83% odds of December BoE cut.

The Pound Sterling is steady on Tuesday as traders shift worried about the economic outlook in the US and market participants eyeing crucial NVIDIA earnings for Q3, keeping US equity markets in the red. The GBP/USD trades at 1.3156 virtually unchanged.

Sterling trades steady despite softer US data and rising Fed cut expectations, with UK inflation and Autumn Budget in focus

The US Department of Labor revealed that Initial Jobless Claims for the week ended October 18 were 232K, while continuing claims rose to 1.957 million. GBP/USDs was muted on its release with traders eyeing Nonfarm Payrolls data on Thursday.

Expectations that the Federal Reserve would cut rates at the December meeting stand at 55%, higher than last week's below 50% chances, according to Prime Market Terminal data.

Alongside this, traders are awaiting British inflation figures, which could potentially impact the Bank of England's path on interest rates. Money markets are expecting a rate cut with odds standing at 83%.

Recently BoE Chief Economist Huw Pill said measures related to inflation had not slowed as much as he would expect in the past. He said that "I think policymakers should be cautious about over-interpreting the latest news in data, because there is a lot of noise in the data flow, and partly because of some of the challenges our colleagues in the Office for National Statistics have faced."

Traders are also awaiting the release of the Autumn Budget in November 26. Chancellor Rachel Reeves is expected to raise tens of billions of pounds to meet her fiscal goals, according to analysts.

GBP/USD Price Forecast: Technical outlook

The GBP/USD daily chart shows the pair consolidating after forming back-to-back doji's below the 20-day Simple Moving Average (SMA) at 1.3185, acting as key resistance. A breach of the latter clears the path to 1.3200 and higher prices. On the flipside, further downside is seen.

Short-term, the GBP/USD hourly chart shows the pair is subdued, with the 20-, 50-, 100- and 200-SMAs trapped within the 1.3141-1.3158 range, an indication of traders' indecision.