- GBP/USD is advancing towards 1.2350 amid an improvement in the risk appetite of investors.
- The UK’s jobless claims are expected to see a potential cut as per the market consensus.
- The street is expecting outperformance from the US Retail Sales data.
The GBP/USD pair is trading minutely positive in the Asian session as investors are awaiting the release of the UK labor force data. The UK’s Office for National Statistics will report the Claimant Count Change in the early European session. The cable is performing a little better on Tuesday as the risk-on impulse is gaining traction. Risk-perceived assets are attracting more funds, which has underpinned sterling against the greenback.
The Claimant Count change dictates the additions in the unemployed labor force who have applied for jobless benefits. The UK’s National Statistics agency is expected to report a drop in jobless claims by -38.8k in April, followed by a significant drop of 46.6k in March. This signifies a tight labor market in the UK. While the Unemployment Rate is expected to remain stable at 3.8%.
Meanwhile, the US dollar index (DXY) is trading lackluster amid fewer economic data this week. The DXY shifted into a correction mode after printing a 19-year high of 105.00 last week. To tame the galloping inflation, an interest rate hike by 50 basis points (bps) in June’s monetary policy is highly likely. But before that, investors are focusing on the US Retail Sales, which are due on Tuesday. A preliminary estimate for the monthly US Retail Sales is 0.7% against the prior print of 0.5%.
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
GBP/USD stays weak near 1.2400 after UK Retail Sales data
GBP/USD stays vulnerable near 1.2400 early Friday, sitting at five-month troughs. The UK Retail Sales data came in mixed and added to the weakness in the pair. Risk-aversion on the Middle East escalation keeps the pair on the back foot.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Israel vs. Iran: Fear of escalation grips risk markets
Recent reports of an Israeli aerial bombardment targeting a key nuclear facility in central Isfahan have sparked a significant shift out of risk assets and into safe-haven investments.