The GBP/USD pair trades with a mild negative around 1.2640 bias on Friday during the early Asian session. The modest rebound of the US Dollar (USD) to 104.20 amid the cautious mood provides some support to the major pair. Investors will closely watch the highly-anticipated US Non-farm Payrolls on Friday, along with the Unemployment Rate and speeches by Fed’s Musalem, Kugler, Barkin, and Bowman.
The US Initial Jobless Claims went up to a two-month high last week. The Labor Department on Thursday revealed that The number of Americans filing new claims for unemployment benefits for the week ended March 30 rose by 9,000 to 221,000 from the previous week of 212,000, below the market consensus of 214,000. Additionally, the Continuing Claims declined by 19K to 1.791M in the week ended March 23. The Greenback dropped below the 104.00 support level following the downbeat US economic data. However, the safe-haven USD pares losses as the fear of Iran's attack on Israel is driving the market.
According to the Express, the CIA has reportedly warned Israel that Iran will attack within the next 48 hours. This warning comes after Israel carried out an attack on Tehran's consulate in Damascus, Syria, killing two Iranian military leaders. The escalating geopolitical tension in the Middle East might boost the US dollar and act as a headwind for the GBP/USD pair.
On the other hand, the Pound Sterling (GBP) will be influenced by market forecasts for Bank of England (BoE) rate cuts. Investors anticipate the UK central bank to lower its borrowing costs in June as UK inflation is slowing consistently. The BoE Governor Andrew Bailey said in recent weeks that, due to further encouraging signs that inflation is cooling, the UK economy is moving towards the point where the central bank can begin cutting interest rates.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.