GBP/USD oscillates in a narrow range around 1.2700, remains below 200-hour SMA
The GBP/USD pair struggles to gain any meaningful traction on the first day of a new week and oscillates in a narrow trading band, around the 1.2700 mark through the Asian session. Spot prices, meanwhile, remain below Friday's swing high and so far, have been struggling to make it through the 200-hour Simple Moving Average (SMA).
Expectations the Federal Reserve (Fed) will continue to tighten its monetary policy assist the US Dollar (USD) to attract some buyers on Monday, which, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair. Data released from the US on Friday showed that the PCE Price Index remains well above the Fed's 2% target and supports prospects for further policy tightening. In fact, the current market pricing indicates a nearly 85% chance of a 25 bps lift-off at the next FOMC policy meeting in July. Read more...
GBP/USD grinds near 1.2700 amid mixed UK employment news, focus on Fed Minutes, US NFP
GBP/USD flirts with the 1.2700 round figure as bulls seek more clues to defend the previous day’s run-up amid a sluggish start to the key week. That said, the Cable pair’s recent inaction could also be linked to the mixed headlines about the UK’s employment and growth conditions, as well as a lack of clear market reaction to the news about the US-China talks.
The UK Times came out with the news suggesting British Health Secretary Steve Barclay’s willingness to give doctors a bigger pay rise, calling for an end to consultant strikes in order to resume negotiations. “Barclay’s admission came as the head of the NHS (National Health Services) warned that the disruption to routine healthcare would become “more significant” this month,” said the news. It should be noted that the UK’s employment report appeared mixed and signaled easing of the labor crunch. Read more...
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