- GBP/USD has the benefit near 1.3616, which is the highest since February 2022.
- The US Nonform Payol is expected to add 130,000 jobs in May.
- GBP receives support as Trump gave UK exporters temporary relief from 50% US tariffs on steel and aluminum.
The GBP/USD maintains its position near 1.3616, the highest since February 2022, which was recorded on 5 June. At the time of writing, the pair is trading around 1.3570, with very few steps from the Labor Market data from the United States (US).
The US Dollar Index (DXY), which measures the value of the US dollar against six major currencies, is trading more at around 98.80 at the time of writing. The upcoming US Nonform Pewls added 130,000 jobs in May, below an increase of 177,000 in April. The unemployment rate is also expected to remain stable at 4.2%.
According to the data released by the US Department of Labor, the weekly early unemployed claims increased to 247,000, above 235,000. Thursday’s US ADP private sector employment increased by 37,000 in May, an increase of 60,000 recorded in April (62,000 from 62,000) is much lower than the market expectation of 115,000.
UBS economist Paul Donovan mentioned that the Federal Reserve (Fed) president Zerome Powell faces challenges in deciding monetic policy amidst an increase in the US economy of uncertainty. The risk of policy error increases as powells emphasize data dependence. The policy works with a gap and real -time data, which is incredible and is generally a bad option.
The GBP/USD pair receives support as the pound sterling (GBP) gets support in the United Kingdom (UK) markets after an executive order by US President Donald Trump signed on Tuesday. UK exporters still face the last 25% tariff rate as Trump gave temporary relief to the UK from 50% US tariffs on steel and aluminum.
economic indicators
Non -pearol
Nonform payroll release presents the number of new jobs made in the US during the last month in all non-agricultural businesses; It has been released by the US Bureau of Labor Statistics (BLS). Monthly changes in parole can be extremely unstable. The number is also subject to strong reviews, which can also trigger instability in the Forex Board. Generally, a high reading is seen as a rapid pace for the US dollar (USD), while a low reading is seen as a recession, although the previous months review and unemployment rate is relevant as the headline figure. Therefore, the market reaction depends on how the market assesses all the data contained in the BLS report.
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