GBPUSD is approaching the 1.3000 line due to USD strength.

GBPUSD falls into the 1.3040s on Tuesday as a result of sustained US Dollar (USD) gain, which stems from lesser expectations that the US Federal Reserve (Fed) will need to be as aggressive in cutting interest rates as previously expected.

The US economy is performing better than projected, and instead of anticipating a hard landing, or recession, passengers on the US enterprise are considering a “no-landing”. This implies that policymakers will It is not necessary to decrease interest rates as substantially as expected to stimulate the economy. The anticipation that interest rates will continue high boosts foreign capital inflows, which raises demand for USD.

GBPUSD fails to increase despite encouraging UK employment data.

GBPUSD is falling despite the release of rather strong UK jobs statistics, which would ordinarily have strengthened the Pound Sterling (GBP) and lifted the Cable.

The unemployment rate declined to 4.0% in the three months to August from 4.1% the previous three months, exceeding predictions of 4.1%. The Employment Change increased by 373K from 265K in the previous period, while average earnings rose in accordance with forecasts. The lone data point Concerns were raise over the September Claimant Count, which increased to 27.9K from 23.7K in August, exceeding predictions of 20.2K.

GBPUSD’s primary market-moving events on Tuesday are expected to be verbal rather than data-driven. They mostly consist of talks by three Fed officials: San Francisco Fed President Mary Daly, Fed Governor Adriana Kugler, and Atlanta Fed President Raphael Bostic.

On the data front, the NY Empire State Manufacturing Index is the metric of the day, albeit it is unlikely to have a significant impact on the Greenback.

Strong UK employment statistics, on the other hand, helps the Pound Sterling gain traction.

A long list of UK data releases promised to paint Wednesday red, white, and blue, with UK broad inflation index, the Consumer Price Index (CPI), and “factory-gate” inflation gauge, the Producer Price Index (PPI) scheduled for release. These factors may have an impact on the Pound Sterling because they influence the Bank of England’s (BoE) interest rate choices.

Inflation data for September will be especially crucial because BoE policymakers have indicated that they may continue reducing rates at the next meeting on November 7.