GBP/USD exchange rate muted amid data-light morning
The pound US dollar (GBP/USD) exchange rate is trapped in a narrow range this morning amid a lack of both UK and US economic data releases.
At the time of writing the GBP/USD exchange rate is trading at around $1.3059, virtually unchanged from this morning’s opening rate.
Pound (GBP) to waver following jobs data?
The pound (GBP) is trading largely flat this morning as an absence of macroeconomic data from the UK sees Sterling struggling to find a clear trajectory ahead of some high impact data scheduled for release tomorrow.
This will come in the form of the UK’s latest labour data, which could infuse volatility into GBP exchange rates should the data confirm a mixed reading.
The UK’s latest employment rate is forecast to remain at 4.1% in August and is expected to remain unchanged from July’s eight-month low.
This could underpin the Pound should the data confirm that July’s robust employment levels were maintained.
However, the UK’s latest average earnings (excluding bonuses) index is expected to report that regular pay decreased in the same time period.
The index is forecast to drop from 5.1% to 4.9% in August, and could negate any GBP gains should the data print as expected and come in at over a two-year low.
US dollar (USD) to remain directionless amid lack of data?
The US dollar (USD) is also largely muted against the majority its peers this morning, however, has manged to gain ground against several of its riskier rivals.
The US dollar’s flatness comes amid a lack of domestic macroeconomic data releases at the start of the week.
However, later today, several Federal Reserve policymakers are forecast to deliver a number of speeches, which could infuse volatility into USD exchange rates as well.
Amid shifting Fed rate cut bets, any dovish commentary from central bank officials could revise 50 basis point interest rate cut bets and in turn undermine the ‘greenback’.
Looking ahead, market moving US data releases will continue to be absent for the majority of this week, which could leave USD exchange rates driven primarily by more upcoming Fed speeches.
Any dovish narratives surrounding US monetary policy will likely reinforce current Fed interest rate cut bets and will likely see USD exchange rates struggle to catch bids as a result.
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