GBP/USD is holding steady after losing the 1.3600 handle.
Key UK labor data and US inflation figures from Q2 are on the offer in the days ahead.
GBP/USD still leans firmly bullish, but a near-term ceiling may be priced in.
GBP/USD Held steady within recent consolidation on Monday, testing the waters near 1.3550. Cable traders are bracing for a fast one-two punch of UK and US data over Tuesday and Wednesday, and trade-related headlines continue to loom over market sentiment, further crimping momentum as investors hope for a cooldown in the US’s latest broad tariff tensions with China.
Trade talks are underway in London this week between the Trump administration and China’s government. Investors are hoping that the US and China will meet in the middle enough to convince the Trump administration to stop holding its own constituents as economic hostages with steep import taxes and tech trade restrictions.
Tuesday will kick things off on the midweek data docket with an update to UK labor and earnings figures. Base average earnings growth is expected to cool to 5.4% through the quarter ended in April, while a jump in the Claimant Count Change is also expected. The number of new unemployment benefits seekers is expected to rise to 9.5K in May.
On the US side, Consumer Price Index (CPI) inflation is slated for Wednesday. Headline US inflation figures are expected to rise as post-tariff inflation data leaks in through the second quarter dataset, which could spell trouble for investors hoping for rate cuts from the Federal Reserve (Fed) this year. Headline CPI inflation is expected to tick up to 2.5% YoY in May.
GBP/USD price forecast
GBP/USD has been knocked back from multi-year highs, but Cable bids remain close to the surface. The pair is holding steady in near-term congestion north of 1.3500, and the pair is still leaning firmly bullish with prices well above the 200-day Exponential Moving Average (EMA) near 1.2960.
GBP/USD daily chart
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