GBP/USD: Cable grinds above 1.2500 as BoE vs. Fed play intensifies, US jobs report eyed
GBP/USD aptly portrays the pre-NFP anxiety in markets during early Friday as it seesaws around 1.2530 by the press time. In doing so, the Cable pair also justifies the latest challenges to the upside momentum flagged from London. It’s worth noting, however, that the increase in the odds favoring the monetary policy divergence between the Bank of England (BoE) and the US Federal Reserve (Fed) in the future seems to have underpinned the Pound Sterling’s latest run-up.
That said, the fears that the higher rates will negatively affect the mergers and acquisitions at home, as well as the economic performance, seemed to have prodded the British dealmakers of late. “Activity in mergers and acquisitions in Britain is at its lowest level in seven years as dealmakers remain cautious about the economic outlook,” said The Times. Read more...
GBP/USD Price Analysis: Oscillates above 1.2500 as US PMI contraction vs. solid Employment divides Fed
The GBP/USD pair is oscillating after a stalwart rally above the psychological resistance of 1.2500 in the early Tokyo session. The Cable has turned sideways as investors are confused that whether Federal Reserve (Fed) policymakers will focus on consistently contracting United States ISM Manufacturing PMI or tight labor market conditions while designing the monetary policy for June month.
On Thursday, the US ISM reported a seventh straight contraction in US factory activity due to higher interest rates while the Automatic Data Processing (ADP) agency reported an addition of 278K fresh payrolls against the consensus of 170K. Read more...
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