GBP/USD exchange rate muted amid absence of UK and US data
The pound US dollar (GBP/USD) exchange rate is trading in a narrow range this morning as both UK and US economic data are in short supply.
At the time of writing the GBP/USD exchange rate is trading at around $1.2756, virtually unchanged from this morning’s opening rate.
Pound (GBP) to slump on domestic jobs data?
The pound (GBP) is struggling to garner investor attention this morning as UK data is thin on the ground, leaving GBP investors to look ahead to the publication of the latest UK labour data.
Scheduled for release tomorrow, UK unemployment is forecast to rise from 4.4% to 4.5% in June.
Should the data print as expected and fall below its current three-year low, the pound could experience significant volatility as a result.
Furthermore, average earnings (excluding bonuses) are also expected to drop, with June’s figure forecast to fall from a two-year low of 5.7% down to 4.5%.
Should tomorrow’s wage data also confirm a large downturn, GBP exchange rates will likely slump in the wake of the release.
US dollar (USD) to dip following PPI?
The US dollar (USD) is wavering this morning, trending mostly flat but faltering against its riskier assets amid a bout of upbeat trade, as USD investors await the publication of the latest PPI data.
Scheduled for release tomorrow, the latest US producer price index is forecast to report a slight downturn in July, and is expected to fall from a previous reading of 0.2% down to 0.1%.
Should the latest PPI data confirm a soft reading for July, this could bolster bets of a Federal Reserve interest rate cut in September, and undermine the ‘greenback’ in the process.
Until then, USD exchange rates could remain on the back foot should this morning’s risk-on mood prevail.
As a safe-haven currency, the US dollar is being undermined by this morning’s improvement in risk appetite following last week’s volatile market mood.
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