GBP/USD subdued just under 1.3550 with FX markets primed for US jobs report

GBP/USD is subdued at just under 1.3550 as the key US jobs report looms.
The pair continues to trade within its recent bullish trend channel, with traders eyeing resistance at 1.3600 and support at 1.3400.

Joel Frank Independent Analyst

GBP/USD is unsurprisingly trading in subdued fashion as FX market participants await the release of the latest official US labour market report at 1330GMT. So far on Friday, the pair has been unable to poke above the 1.3550s and has mostly been going sideways in the 1.3530-50 area. In the broader technical context, GBP/USD’s has been moving higher within the confines of a bullish trendline since just after Christmas and this trend currently remains intact. But traders may be leery about chasing the pair any higher if the upcoming US labour market report comes in as good as expected, thus boosting the prospect of a March Fed rate hike.

GBP/USD bulls will be relieved that the hawkish Fed minutes from earlier in the week and associated sharp upside in US bond yields didn’t translate into broad USD strength. Indeed, the pair is actually on course to post a modest weekly gain of about 0.1%, which would mark a third successive week in the green, with sterling having gained recently as UK pandemic/lockdown fears subsided. But some FX strategists have argued that the proximity of the jobs report so close after the release of the hawkish Fed minutes may have deterred USD bulls from, at the time, increasing their long exposure. With the jobs report out of the way (as long as it is decent), the dollar may get the “green light” to push higher, analysts have warned.

Was that to be the case, GBP/USD likely would suffer and the 1.3500 level would below vulnerable. A break below that could open the door to technical selling to drive the pair as low as 1.3400 where the 50-day moving average resides. In the reverse case where the dollar sees post-jobs report weakness, the key area of resistance to watch is at 1.3600.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

EUR/USD holds above 1.1500 after ECB, US PPI

EUR/USD has come under fresh selling pressure and heads toward 1.1500 in Thursday's American trading. The European Central Bank delivered rate hikes as expected, while US wholesale inflation was higher than anticipated in May.

GBP/USD extends slide below 1.3350 on renewed USD demand

GBP/USD is falling below the 1.3350 level in the American session on Thursday. Increased hawkish Fed bets and looming Mideast geopolitical risks sponsor the latest leg up in the US Dollar, particularly after the Producer Price Index jumped to 6.5% YoY in May.

Gold challenges fresh 2025 lows below $4,100

Gold trades around $4,070 a troy ounce, dangerously approaching the psychological $4,000 mark. A softer Core US Consumer Price Index eased concerns about a runaway inflation spiral, but renewed concerns surged after the higher-than-anticipated May US PPI report.

Pi Network: Recovery at risk with 16 million PI tokens ready for unlock

Pi Network edges higher after three days of consecutive losses earlier this week, extending the prevailing downtrend since late April. The scheduled unlocking of 16 million PI tokens on Thursday could add pressure to the intraday recovery. Technically, PI remains under bearish pressure.

Indonesia surprise rate hike may not be enough to save the Rupiah

The surprise rate hike from Bank Indonesia, aimed at protecting the Indonesian Rupiah from sliding further, seems to have worked for now. The rate increase definitely helps, but there’s more work to do if Jakarta wants to ease investors’ concerns for good.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.