GBP/USD edges higher to near 1.3300, recovers due to weaker US Dollar

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • GBP/USD gains ground as the US Dollar remains under pressure amid persistent trade-related uncertainties.

  • Washington may lean toward a weaker dollar to advance its trade objectives.

  • The latest UK labor report suggested that employers scaled back hiring ahead of higher social security contributions effective from April.

GBP/USD is rebounding from recent losses, trading near 1.3280 during the Asian session on Thursday. The pair is supported by a softer US Dollar (USD), as investors weigh ongoing trade-related uncertainties despite a slight easing in tensions. Market focus now shifts to the release of US Retail Sales and Producer Price Index (PPI) data later in the day.

Speculation is building that Washington may prefer a weaker dollar to bolster its trade position. The Trump administration has argued that a strong Greenback, relative to weaker regional currencies, disadvantages US exporters.

However, downside pressure on the USD may be limited. Improved global trade sentiment has eased recession concerns, reducing expectations for aggressive Federal Reserve (Fed) rate cuts. According to LSEG data, markets now price in a 74% chance of a 25-basis-point cut in September, down from earlier forecasts for a July cut.

Meanwhile, the British Pound (GBP) holds steady as traders reassess the Bank of England’s (BoE) policy outlook following Tuesday’s labor market data for the three months ending March. The report showed slower job growth, a higher unemployment rate, and easing wage gains, suggesting that employers scaled back hiring ahead of higher social security contributions effective from April.

Nonetheless, moderate wage growth may offer some relief to BoE policymakers. Wage trends remain a key indicator for inflation in the services sector, which continues to drive underlying UK price pressures.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
USD/JPY Price Forecast: The pair remains bullish with 146.15 on sightThe US Dollar keeps trading in a bullish trend with higher highs and higher lows against a weaker Yen and is on track to close the week 0.8% higher, despite the strong Japanese inflation figures seen earlier today.
Author  FXStreet
Jun 20, Fri
The US Dollar keeps trading in a bullish trend with higher highs and higher lows against a weaker Yen and is on track to close the week 0.8% higher, despite the strong Japanese inflation figures seen earlier today.
placeholder
US Dollar Index retraces to near 98.60 as Trump reassesses decision to strike IranThe US Dollar (USD) retraces from its weekly high as comments from the White House that it will decide on its plans of striking Iran in the next two weeks have provided interim relief to investors.
Author  FXStreet
Jun 20, Fri
The US Dollar (USD) retraces from its weekly high as comments from the White House that it will decide on its plans of striking Iran in the next two weeks have provided interim relief to investors.
placeholder
Pound Sterling faces selling pressure after poor UK Retail Sales dataThe Pound Sterling (GBP) faces selling pressure against its major peers on Friday after the release of the weaker-than-projected United Kingdom (UK) Retail Sales data for May.
Author  FXStreet
Jun 20, Fri
The Pound Sterling (GBP) faces selling pressure against its major peers on Friday after the release of the weaker-than-projected United Kingdom (UK) Retail Sales data for May.
placeholder
USD/CHF consolidates above mid-0.8100s; remains close to weekly high set on ThursdayThe USD/CHF pair lacks a firm intraday directional bias on Friday and oscillates in a narrow band, just above mid-0.8100s through the first half of the European session.
Author  FXStreet
Jun 20, Fri
The USD/CHF pair lacks a firm intraday directional bias on Friday and oscillates in a narrow band, just above mid-0.8100s through the first half of the European session.
placeholder
EUR/USD nudges higher as the US Dollar pulls back with risk aversion easingThe EUR/USD pair is trading higher for the third consecutive day on Friday and has returned above the 1.1500 level.
Author  FXStreet
Jun 20, Fri
The EUR/USD pair is trading higher for the third consecutive day on Friday and has returned above the 1.1500 level.
Real-time Quote