Sterling rallies despite unchanged UK unemployment at 4.4% as strong wage growth complicates BoE's easing path.
The US Dollar Index drops over 5% in three weeks as safe-haven demand fades and tariff risks grow.
UK inflation data and Powell's speech are in focus; the UK remains exempt from US tariffs for now.
The Pound Sterling (GBP) rose and refreshed six-month highs against the US Dollar (USD) on Tuesday as the financial markets' narrative remains linked to the US imposing tariffs. Cable shrugged off soft United Kingdom (UK) jobs data; hence, GBP/USD rallied 0.36% and is trading at 1.3233.
GBP/USD climbs shrugging off soft UK jobs data as BoE rate cut bets build and USD continues to slide
Market mood remains positive, to the detriment of safe-haven currencies like the Greenback, which has depreciated over 5.34% during the last three weeks, according to the US Dollar Index (DXY).
The UK's labor market data showed that the Unemployment Rate remained unchanged at 4.4% in February, as expected and aligned with analysts' estimates. Nevertheless, wages remained strong, exerting pressure on the Bank of England (BoE), which had refrained from easing policy, justifying that salaries remained high.
Despite this, market participants had primarily prized in a 90% chance that the BoE will cut rates at the May meeting, followed by another two cuts, via the interest rates futures market.
In the meantime, the UK has remained outside US President Donald Trump's scope to apply tariffs on British goods, which would exert pressure on the economy, opening the door for a slowdown.
Nevertheless, growing concerns about a global recession spurred by the trade war keep investors' sentiments deteriorating.
GBP/USD traders are looking for the release of the latest inflation figures in the UK. Across the pond, the US docket will feature Federal Reserve (Fed) speakers, with investors focused on Fed Chair Jerome Powell's speech on Wednesday.
Source: Fxstreet
GBP/USD rebounds from session lows and trades marginally higher on the day above 1.3550. The renewed selling pressure surrounding the USD following the inflation and Jobless Claims data help the pair ...
GBP/USD tested the 1.3550 area again for the fourth consecutive day on Wednesday, but has so far been unable to break higher. The market is likely to remain cautious ahead of the release of US consume...
The British pound (GBP) traded higher against other major currencies, except for the Antipodean currencies, on Wednesday. The British currency showed strength as market sentiment remained optimistic a...
The British pound (GBP) continued its strengthening against the US dollar (USD) for the third trading day on Tuesday. The GBP/USD pair reached a new three-week high around 1.3580 during the European t...
The pound was virtually unchanged on Monday (September 8th), after posting its biggest one-day rally against the dollar in two weeks on Friday, following surprisingly weak US jobs data that had reinfo...
Brent oil prices strengthened on Friday (September 12th), with the last price recorded at $66.54 per barrel. This increase reflects positive sentiment in the energy market amid expectations of an interest rate cut by the Federal Reserve, which...
Oil prices held steady on Friday (September 12th) as concerns about oversupply and weakening U.S. demand offset the risk of supply disruptions stemming from conflicts in the Middle East and Ukraine. Brent crude futures rose 11 cents, or 0.2%, to...
Gold (XAU/USD) trims a part of its intraday gains, though it sticks to positive bias through the first half of the European session on Friday and remains close to the record high touched earlier this week. Softer labor market data overshadowed a...
The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday...
The International Monetary Fund on Thursday said the Federal Reserve has scope to lower interest rates because of the weakening U.S. labor market,...
Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), fell to 2.6% annually in August from 3.3% in...
The US Bureau of Labor Statistics reported on Tuesday that the preliminary estimate of the Current Employment Statistics (CES) national benchmark...