Pound Sterling Price News and Forecast: GBP/USD stays defensive after bouncing off six-week low
|GBP/USD struggles to cheer US Dollar’s retreat near 1.2700 ahead of UK employment, US Retail Sales data
GBP/USD sticks to mild gains around 1.2700 as market players brace for the top-tier UK/US statistics on early Tuesday. That said, the Cable pair recently bounced off the lowest level in 1.5 months amid the US Dollar’s pullback but fails to extend the recovery moves amid cautious mood in the markets ahead of the data, as well as due to mixed concerns about the frontline risk catalysts.
That said, the US Dollar Index (DXY) retreats from the highest level in five weeks, printing the first daily loss in four around 103.05 by the press time, after witnessing downbeat inflation clues. That said, the New York Fed’s one-year inflation expectations eased to 3.5% for July, down three points by falling to the lowest level since April 2021. New York Fed survey, however, also suggested confidence in positive labor market conditions and economic transition. Read more...
GBP/USD oscillates in a range below 1.2700 mark, traders keenly await UK jobs data
The GBP/USD pair fails to capitalize on the overnight modest bounce from the 100-day Simple Moving Average (SMA), near the 1.2615 area, or its lowest level since late June and oscillates in a narrow range during the Asian session on Tuesday. Spot prices currently trade around the 1.2685 region as traders keenly await the release of the latest UK monthly employment details before placing fresh directional bets.
The market focus, meanwhile, will remain glued to the UK wage growth data, which is expected to accelerate to the fastest pace on record in July. A stronger print will likely increase the odds for a November interest rate hike by the Bank of England (BoE) and provide a goodish lift to the British Pound. Conversely, an undershoot would have the opposite impact on the back of looming recession risks. Nevertheless, the data will determine how many further rate hikes the BoE has left in the tank and provide a fresh directional impetus to the GBP/USD pair. Read more...
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