GBP/USD pound sterling rebounds as focus shifts to employment data

GBP/USD Forecast: Pound Sterling could struggle to find direction ahead of key UK data

GBP/USD edged lower in the Asian session on Monday but managed to recover to the 1.2700 in the European morning. Investors could refrain from taking large positions ahead of the UK labor market and inflation data due for release on Tuesday and Wednesday, respectively.

The negative shift witnessed in risk sentiment on concerning developments in China’s property sector allowed the US Dollar (USD) to find demand as a safe haven. The USD Index climbed to its highest level in over a month near 103.00 at the beginning of the week and GBP/USD turned south. Read more…

Pound Sterling rebounds as focus shifts to employment data

The Pound Sterling (GBP) strengthens amid upbeat Q2 Gross Domestic Product (GDP) and factory data for June. The GBP/USD pair faces headwinds from bearish market sentiment ahead of the British employment data, which will be released on Tuesday at 6:00 GMT.

Stellar recovery in United Kingdom’s Q2 GDP data makes Bank of England (BoE) policymakers more comfortable in raising interest rates further so that a swift return of inflation to 2% can be ensured. If labor market conditions turn out tight and wage growth continues to be high, the deadly duo of upbeat economic outlook and tight employment would raise expectations of a higher interest-rate peak. Read more…

GBP/USD risks coming down to the 1.2590/2610 area on the back of the stronger Dollar – ING

The UK releases two important data sets this week. Economists at ING analyze GBP outlook ahead of employment and prices figures.

Tuesday’s release of the jobs data should continue to show average earnings coming in on the high side at 7%+ year-on-year. Sterling may have more trouble with Wednesday’s July CPI data. Here, we expect services inflation to surprise on the downside and dent expectations for a further 50 bps tightening from the Bank of England. Read more…