- US Dollar Index continues to float above 99.
- PM Johnson's spokesman says UK is not seeking "anything special" in trade deal with EU.
- Unemployment Rate in UK is expected to stay unchanged at 3.8%.
The GBP/USD pair closed the previous week 150 pips higher as the British pound gathered strength after Prime Minister Boris Johnson appointed Rishi Sunak, who is expected to ramp up fiscal spending, as the new Chancellor of the Exchequer. However, the pair started the new week on the back foot and fell to a daily low of 1.3003 before going into a consolidation phase. As of writing, the pair was down 0.25% on the day at 1.3010.
Earlier in the day, PM Johnson's spokesman said that they were not seeking "anything special" from the EU in trade negotiations and this stance brought in modest selling pressure on the British pound. "We are ready to negotiate now, we want the relationship to be based on friendly cooperation," the spokesman added.
Focus shifts to UK employment data
On the other hand, the greenback preserves its strength at the start of the week and makes it difficult for the pair to stage a rebound. Although US financial markets are closed in observance of the Presidents' Day, the US Dollar Index, which added 0.5% last week, is staying at its highest level since early October at 99.17.
On Tuesday, the UK's Office for National Statistics (ONS) will release the Claimant Count Change and ILO Unemployment Rate data. Analysts' see the Claimant Count Change to come in at +22.6K in January and expect the ILO Unemployment Rate to remain unchanged at 3.8%.
Technical levels to watch for
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.