GBP/USD trades with a mild negative bias, below mid-1.2700 amid reviving USD demand – by hareshmenghani GBPUSD NFP Fed BOE Currencies
missed consensus estimates and showed that the economy added 187K jobs in July. Adding to this, the readings for May and June were revised down, suggesting that demand for workers was slowing. That said, solid wage growth and a downtick in the unemployment rate pointed to continued tightness in the labour market. This keeps the door for one more 25 bps rate hike by the Federal Reserve in September or November wide open and lends some support to the buck.
The British Pound , on the other hand, is undermined by the Bank of England's less hawkish forward guidance that rates were close to a peak. In fact, the UK central bank, after raising its key interest rate by 25 bps to a 15-year peak level of 5.25% last Thursday, stated that the currentstance is "restrictive". This further contributes to a mildly offered tone surrounding the GBP/USD pair.
Market participants might also prefer to move to the sidelines ahead of this week's release of the latest US consumer inflation figures on Thursday and a slew of important UK macro data, including the monthly GDP print on Friday. In the meantime, speeches by influential FOMC members on Monday might influence the USD price dynamics and provide some impetus to
in the absence of any relevant market-moving economic releases. Nevertheless, the aforementioned mixed fundamental backdrop suggests that strong follow-through selling is needed to support prospects for a further intraday depreciating move.
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