GBPUSD retains modest gains, BoE-Fed talks ahead of the US NFP

GBPUSD oscillates between 1.2155 and 1.2155-60, recording the first daily advances in three days in early Good Friday morning London. In doing so, the Cable pair applauds the Bank of England’s (BoE) hawkish ambitions. While simultaneously showing a cautious tone ahead of the important US Nonfarm Payrolls report. (NFP).

In the face of continued inflationary pressures, Andrew Goodwin, Chief UK Economist at Oxford Economics, predicts another 0.25% rate rise from the “Old Lady,” as the Bank of England is colloquially called.

In contrast to Brexit concerns, the BoE has more hawkish expectations than the Fed.

The UK’s home price index indicated continued price pressure, even if the Bank of England’s Monthly Decision Maker Panel (DMP) poll suggests that the Consumer Price Index (CPI) would likely fall from 5.9% predicted in February to 5.8% for the one-year forward measure.

Fears about the new Brexit, on the other hand, according to BBC News, the agreement would inhibit European Union (EU) imports, which appear to put pressure on GBPUSD pricing. According to the report, new proposals for post-Brexit border inspections on products entering the UK will discourage many EU suppliers and drive-up food costs.

In other news, disappointing US data raises the prospect of no Federal Reserve (Fed) rate rises in May, weighing on the US Dollar. The same US numbers, however, cause recession worries and put a floor under the greenback. As a result, the US Dollar Index (DXY) is clinging to little gains at 102.00.

In terms of US statistics, initial jobless claims increased to 228K for the week ending March 31, up from 200K predicted and an upwardly revised 246K. It’s worth mentioning that Challenger Job Cuts for the same month increased to 89.703K from 77.77K the previous month. Previously, JOLTS Job Openings in the United States fell to a 19-month low in February, while ADP Employment Change for March disappointed investors with 145K data. Furthermore, the US ISM Services PMI for March fell to 51.2, below 54.5 predicted and 55.1 in February.

Among these trades, market sentiment remains negative, and yields appear to be resuming their current decline, posing a challenge to GBPUSD investors. However, new job opportunities are contingent on the US employment statistics.

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