GBP prints a fresh four-day high on upbeat market mood

GBP/USD Forecast: Pound Sterling could extend rebound on weak US ADP jobs data

GBP/USD registered gains for the second straight day on Tuesday but failed to preserve its bullish momentum early Wednesday. The near-term technical outlook highlights the pair’s indecisiveness as investors stay on the sidelines while waiting for the US ADP Employment Change data for August.

The table below shows the percentage change of Pound Sterling (GBP) against listed major currencies today. Pound Sterling was the weakest against the US Dollar. The risk rally seen in the American session on Tuesday helped GBP/USD stretch higher. Investors started to reassess the probability of the Federal Reserve raising the policy rate one more time this year after the JOLTS report showed that the number of job openings fell for the third month in a row in July, touching its lowest level since May 2021 at 8.8 million. Read more…

Pound Sterling prints a fresh four-day high on upbeat market mood

The Pound Sterling (GBP) is holding its ground on Wednesday as a higher risk appetite among market participants continues to improve the appeal for risk-sensitive assets. The GBP/USD pair remains well-supported as investors hope that the policy divergence between the Federal Reserve (Fed) and the Bank of England (BoE) will vanish this year. More interest rate hikes from the BoE are in the pipeline as the core Consumer Price Index (CPI) data remains sticky near its all-time peak.

In the battle against persistent inflation, the UK’s factory activities and its property sector have been major victims. British firms continue to operate at lower capacity due to a poor demand outlook, and higher mortgage rates have forced homebuyers to postpone their purchases. Read more…