GBP/USD remains weak for the third straight session, hovering around 1.3150 in early Tuesday trading. The Pound Sterling faces renewed pressure after UK Chancellor Rachel Reeves scrapped planned income-tax increases, raising fresh concerns about the UK’s fiscal outlook. Although the Office for Budget Responsibility cut its deficit forecast to £20 billion from £35 billion, markets expect Reeves to seek revenue through measures such as threshold adjustments and salary-sacrifice reforms rather than major tax changes.

The British Pound is also weighed down by softer UK economic data, which strengthened expectations of a December rate cut by the Bank of England (BoE). The UK economy showed minimal growth in Q3, while GDP fell in September. Traders will now look to this week’s inflation data, flash PMIs, and signs of further cooling in the services and manufacturing sectors.

On the US side, the Dollar remains steady as markets await a wave of delayed economic releases following the government’s reopening. Declining expectations for a December Federal Reserve rate cut have supported the USD, although Fed Governor Christopher Waller said Monday that a rate cut should be considered in December, citing concerns over a softening labor market and slowing hiring.