GBP/USD recovers some lost ground near 1.2550 ahead of the UK employment, US CPI data
|- GBP/USD recovers some lost ground near 1.2550 on the consolidation of the US Dollar.
- The US Nonfarm Payrolls beat the market expectations in November, adding 199K new jobs to the US economy.
- The BoE is likely to keep borrowing costs at a 15-year high at its December meeting on Thursday.
- Investors will focus on the UK employment data and US inflation data, due on Tuesday.
The GBP/USD pair holds positive ground during the early Asian session on Monday. The pair recovers some lost ground from Friday’s low of 1.2500 and currently trades around 1.2551, gaining 0.03% on the day. The US Nonfarm Payrolls came in better than market expectations. Traders await the key events from the FOMC and BoE meeting this week and these events could trigger volatility in the market.
The Bank of England (BoE) governor Andrew Bailey said last month it was far too early to be thinking about rate cuts while warning there was “no room for complacency” on inflation despite a fall in the Consumer Price Index from 6.7% in September to 4.6% in October. The BoE is likely to keep borrowing costs at a 15-year high at its December meeting on Thursday.
The US Nonfarm Payrolls beat market expectations in November, adding 199K new jobs in the US economy from October’s print of 150K payroll additions. Furthermore, the Unemployment Rate declined to 3.7% from 3.9% while the Average hourly earnings remained unchanged at 4.0% YoY.
Last week, US Federal Reserve (Fed) Chair Jerome Powell said earlier this month that it would be premature to conclude with confidence that the Fed had achieved a sufficiently restrictive stance to tame inflation. Powell added that we are prepared to tighten policy further if it becomes appropriate to do so. Nonetheless, investors speculated that the upbeat US Nonfarm Payrolls (NFP) report may convince the Federal Reserve (Fed) to delay rate cutting in 2024.
Market players will keep an eye on the UK employment data, including Employment Change, Claimant Count Change, and ILO Unemployment Rate, due on Tuesday. Also, the US inflation data, as measured by the US Consumer Price Index (CPI) will be released later on Tuesday. The focus will shift to the US FOMC meeting on Wednesday and the BoE policy meeting on Thursday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.