GBP/USD rises to near 1.3450 due to improved market sentiment, UoM Consumer Sentiment eyed
GBP/USD appreciates as the US Dollar loses ground following the dovish Fedspeak.
San Francisco Fed President Mary Daly noted that expecting two rate cuts this year is a "reasonable" outlook.
The Pound Sterling received support from mixed UK employment figures.
GBP/USD gains ground after registering small losses in the previous session, trading around 1.3440 during the Asian hours on Friday. The pair appreciates as the US Dollar (USD) edges lower due to dovish remarks from the Federal Reserve (Fed) officials.
San Francisco Fed President Mary Daly said that expecting two rate cuts this year is a "reasonable" outlook, while warning against waiting too long. Daly added that rates will eventually settle at 3% or higher, which is higher than the pre-pandemic neutral rate.
Fed Governor Christopher Waller said late Thursday that he believes that the US central bank should reduce its interest rate target at the July meeting, citing mounting economic risks. Waller added that delaying cuts runs the risk of needing more aggressive action later.
However, the US Dollar gained ground following the stronger-than-expected US Retail Sales data released on Thursday. US Retail Sales rose by 0.6% month-over-month in June versus -0.9% prior. This figure came in above the market consensus of 0.1%. Meanwhile, the annual Retail Sales climbed 3.9%, compared to a rise of 3.3% in May. The University of Michigan Consumer Sentiment, Building Permits, and Housing Starts will be eyed later on Friday.
The GBP/USD pair also drew support as the Pound Sterling (GBP) received support from a mixed United Kingdom (UK) job market report, which showed more employment levels but also a higher unemployment rate.
The UK ILO Unemployment rose to 4.7% in the three months to May, against the market expectations of remaining unchanged at 4.6%. Claimant Count Change showed that the number of people claiming jobless benefits increased 25.9K in June, compared with a revised increase of 15.3K in May, above the expected 17.9K figure.
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