GBPUSD remains over 1.2500 but lacks direction.
During the early European trading hours on Tuesday, the GBPUSD pair consolidates its recent losses above the 1.2500 level. The main currency is presently trading around 1.2515, up 0.04% on the day.
The three-month unemployment rate in the United Kingdom was 4.3% in July, up from 4.2% in the previous reading.
The most recent information The Office for National Statistics in the United Kingdom reported that the unemployment rate in the three months to July was 4.3%, up from 4.2% in the previous reading. in accordance with the market consensus. Meanwhile, Employment Change for July fell by 207K from a prior figure of 66K, worse than the projected 185K loss. In the three months to July, average earnings including bonuses increased by 8.5%, compared to 8.2% the previous year. The result, without the incentive, stays at 7.8%, as predicted.
The higher for longer interest rate story in the United States strengthens the US Dollar.
Catherine Mann, a policymaker at the Bank of England (BoE), indicated on Monday that it was too early for the central bank to pause interest rates and that it was preferable for the central bank to err on the side of rising interest rates too high rather than suspending them too soon. The hawkish comments by BoE governors may restrict the British Pound’s fall and act as a tailwind for GBPUSD.
Throughout theThe higher for longer interest rate story in the United States strengthens the US Dollar (USD) against the British Pound (GBP). According to the CME FedWatch Tool, markets have priced in a 92% likelihood of a rate hold at the September meeting and a 42.4% chance of a rate rise at the November meeting.
On Sunday, US Treasury Secretary Janet Yellen stated that she is getting more confident that the US will be able to control inflation without negatively impacting the labor market. She went on to say that every measure of inflation is down, and there has been no major wave of layoffs.
GBPUSD investors will be watching the monthly UK GDP data and the US Consumer Price Index (CPI).
GBPUSD participants will divert their attention to the monthly UK GDP data and Manufacturing Production for July, both of which are coming on Wednesday. In addition, the highly anticipated US Consumer Price Index (CPI) data will be revealed on Wednesday during the North American session. Traders will discover trading opportunities in the GBP/USD pair.
