GBP/USD steadies a little above 1.29, erases nearly 100 pips since start of week
|- Mixed jobs report from UK weighs on the GBP.
- UK Labour Party member says no shift from government to break Brexit deadlock.
- Easing concerns over U.S.-China trade dispute helps USD rebound on Tuesday.
The GBP/USD pair, which started the week a little above the 1.30 mark, extended its slide for the second straight day on Tuesday and touched its lowest level in two weeks at 1.2909. As of writing, the pair was trading at 1.2916, losing 0.32% on a daily basis.
Earlier today, the UK's Office for National Statistics reported that the unemployment rate ticked down to 3.8% in March to beat the market expectation of 3.9%. However, the fact that the claimant count change rose to 24.7K from 22.6K and came in worse than analysts' estimate of 24.2K while the average earnings including bonuses rose by 3.2% annually compared to experts' forecast of 3.4% weighed on the British pound.
On Brexit-related headlines, the UK's opposition Labour Party's finance policy chief McDonnell today said that the government had not made any changes to its stance to break the Brexit deadlock in cross-party talks to make it difficult for the GBP to recover its losses. "The government may have to accept there is a second Brexit referendum at some point," McDonnell further added.
On the other hand, slightly improved market sentiment today allowed the 10-year US Treasury Bond yield to rebound from multi-week lows and helped the US Dollar Index gain traction. The DXY, which tested the 97 mark yesterday, was last seen adding 0.14% on the day at 97.50. President Trump today tweeted out that they would make a deal with China when the time was right and said that it would be much faster than people think.
Technical levels to watch for
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