GBP/USD Outlook: Weaker USD-inspired rally could fade rather quickly, UK/US macro data in focus
The GBP/USD pair rallies over 60 pips from the daily trough, around the 1.2465 region and maintains its bid tone near a three-day peak during the early European session on Monday. Spot prices currently trade near the 1.2525-1.2530 region, up 0.50% for the day, and for now, seems to have snapped a four-day losing streak to the lowest level since June 8 touched last week.
The intraday positive move is exclusively sponsored by a sharp US Dollar (USD) pullback from a six-month top, triggered by the hawkish Bank of Japan (BoJ)-inspired strong move up in the Japanese Yen (JPY). The USD decline could further be attributed to some repositioning trade ahead of this week's release of the US consumer inflation figures, due on Wednesday. Read more...
Pound Sterling rebounds strongly on cheerful mood, UK Employment in focus
The Pound Sterling (GBP) rebounds strongly as bearish market sentiment eases, while the broader bias is still vulnerable. The GBP/USD pair recovers swiftly ahead of the United Kingdom’s Employment report for July, which will demonstrate current labor market conditions. Investors will keenly focus on wage growth momentum, which has remained a major trigger for keeping inflationary pressure extremely stubborn.
The UK’s labor data release will show how well restrictive monetary tools from the Bank of England (BoE) are performing in a high-inflation environment. Investors will also look for commentaries from BoE policymakers to get cues about how much the current interest rates are close to their peak. Read more...
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