GBP/USD remains close to recent peaks as USD remains off-kilter

GBP/USD sticks close to near-term highs as key labor data looms

GBP/USD caught a bid on Wednesday, paring the previous day’s losses and keeping price action on the high side of recent congestion. Bids remain pinned firmly above 1.3500 with key US Nonfarm Payrolls data looming ahead later in the week. US Dollar flows continue to dominate markets this week, with a thin offering from the UK side of the economic data docket until next week’s UK labor figures.

ADP Employment Change numbers dropped sharply in May, adding just 37K jobs, far below the expected 115K increase. Historically, ADP job figures are volatile and often poorly predict Nonfarm Payrolls (NFP) that soon follow. This Friday’s NFP release will hold added significance as investors grow concerned about the American economy’s labor sector. Increasingly wary of business conditions due to fluctuating White House trade policies, many companies are scaling back hiring and investment plans. Read more…

British Pound recovers ground amid soft USD, upbeat PMI, and tariff reprieve

The British Pound (GBP) edges higher against the US Dollar (USD) on Wednesday, paring Tuesday’s losses as the Greenback softens slightly ahead of key US labor market data. GBP/USD is seeing modest gains after the US Dollar rallied over 0.50% in the previous day, supported by stronger-than-expected JOLTS Job Openings figures that boosted confidence in the labor market.

At the time of writing, the pair is trading around 1.3522 during the European session, but remains stuck within a familiar range between 1.3450 and 1.3600. Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is holding steady near Tuesday’s high, hovering around 99.20. Traders are awaiting the ADP Employment Change report, due later on Wednesday, for fresh direction. Read more…