GBP/USD grinds higher past 1.2700 even as options market signals prod Cable bulls, US NFP eyed

Anil Panchal FXStreet

GBP/USD holds onto the previous day’s upside momentum while picking up bids to 1.2745 amid the early hours of Friday’s Asian session. That said, the Pound Sterling pair marked a stellar move on Thursday while rising the most in more than a week to refresh a fortnight-high before paring some gains by the day’s end while reversing from 1.2781.

It’s worth noting that the market’s cautious mood ahead of the US employment report for June, including the Nonfarm Payrolls (NFP), could be held responsible for the Cable pair’s latest struggles. Adding to that is the latest downbeat print of the options market signal.

A one-month risk reversal (RR) of the GBP/USD price, a gauge of the spread between the call and put options, prints the first negative closing in the last six days while marking the -0.090 figure at the latest, per Reuters options market data.

It’s worth noting, however, that the weekly RR braces for the strongest positive close in a month with the latest prints of 0.125 by the end of Thursday’s North American session.

Also read: GBP/USD Price Analysis: Traders are positioned flat ahead of NFP, breakout eyed

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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