GBP/USD – Eyes on US data for next directional clue

Pound Sterling maintains strength despite sticky inflation bites households’ pocket

Pound Sterling has jumped to near the round-level resistance of 1.2800 despite the impact of higher interest rates by the Bank of England (BoE) has put a heavy burden on United Kingdom households. The GBP/USD pair has picked immense strength as the United States Nonfarm Payrolls (NFP) have missed expectations. The US economy added 209K fresh jobs in June while the street was anticipating the fresh addition of 225K. Last month, Employment additions were 306K.

Andrew Bailey has accused United Kingdom’s industry regulators of overcharging prices for fuel to strengthen aggressive monetary policy. The central bank is looking for options beyond quantitative tools to bring down inflation, which is restricting to leave territory above 8.5%. Going forward, investors will focus on the interest rate guidance from BoE policymakers. Read more …

GBP/USD Forecast: Eyes on US data for next directional clue

GBP/USD retreated from the two-week high it set at 1.2782 on Thursday but stabilized near 1.2750 on the last trading day of the week. The June jobs report from the US could significantly impact the US Dollar’s (USD) valuation and drive the pair’s action ahead of the weekend.

After the data from the US showed that the service sector’s economic activity expanded at a stronger pace than expected in and that private sector payrolls rose nearly 500,000 in June, the USD started to gather strength against its peers. As a result, GBP/USD declined sharply and erased nearly 100 pips, touching a daily low below 1.2700 in the American session. Read more …