GBP/USD posts modest gains around 1.3405 in Wednesday’s early Asian session.
US Job Openings fell to the lowest level since September; CB Consumer Confidence dropped below consensus.
BoE's Greene said Trump tariffs are likely to push down UK inflation.
The GBP/USD pair trades with mild gains near 1.3405 during the early Asian session on Wednesday. The weaker-than-expected US economic data drags the Greenback lower. Later on Wednesday, the US ADP Employment Change will be released, along with the Personal Consumption Expenditures Price Index (PCE) and the flash Q1 Gross Domestic Product (GDP) report.
Data released by the US Bureau of Labor Statistics on Tuesday showed that US job openings fell to 7.19 million in March, the lowest since September 2024, compared to a revised 7.48 million in February. This figure came in below the market consensus of 7.5 million. Meanwhile, the Conference Board’s Consumer Confidence Index declined to 86.0 in April from 93.9 in March (revised from 92.9). This figure registered the lowest level since April 2020.
The weaker labor demand and sentiment data in the US increased concerns about economic momentum amid increased uncertainty, which undermined the Greenback and created a tailwind for GBP/USD.
On the other hand, the rising bets that the Bank of England (BoE) will reduce interest rates in the May policy meeting might cap the upside for the Pound Sterling (GBP). Financial markets have priced in nearly a 96% odds that the BoE cut its rate by a quarter-point to 4.25% when it announces its next move on May 8.
BoE policymaker Megan Greene said last week that US President Donald Trump's tariffs would probably lead to lower rather than higher inflation in the UK, but big uncertainties remained about the plan and the impact of a recent UK tax hike for employers.
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