GBPUSD refreshes multi-day highs, rising for the third day in a row.
GBPUSD advances for the third day in a row to test the late May 2022 high. Breaking beyond the 1.2600 level early Friday. In doing so, the Cable pair applauds widespread US Dollar weakness as well as recent positive. UK data just ahead of the important US Nonfarm Payrolls (NFP).
In the face of dovish Fed fears, the US dollar fails to welcome largely stronger data.
The US Dollar Index (DXY) falls to 101.18. reversing the previous day’s corrective recovery off a one-week low. As markets remain confident of the Federal Reserve’s (Fed) policy reversal. Following recent mixed US data and a Fed meeting.
The early figures for nonfarm productivity and unit labor cost in the United States for the first quarter (Q1) of 2023 were mixed. However, nonfarm productivity fell to -2.7% in Q1 from 1.6% the previous quarter and -1.8%. Forecasted by the market, while unit labor costs increased. Increased to 6.3% from 5.5% projected and 3.3% previously.
Furthermore, the US Goods and Services Trade Balance improved to $-64.2 billion from $-70.6 billion previously and $-63.3 billion expected by the market. In addition, initial jobless claims rose to 242K for the week ending April 28 from 240K predicted and 229K in prior readings.
Worries over the US banking industry have joined impending default worries to shake market confidence. However, recent US policymakers’ actions and comments indicating no immediate fears of a banking crisis. Appear to be exerting downward pressure on the US Dollar.
The optimistic revision of the UK’s activity statistics for April, on the other hand, strengthens the hawkish attitude around the Bank of England (BoE) and accelerates the Cable pair.
Having saying that, the final readings of the S&P Global/CIPS Services PMI in the United Kingdom jumped to 55.9 in April from 54.9 in March, while the Composite PMI improved to 54.9 from 53.9 in March.
Among these bets, the S&P 500 Futures show modest gains despite the fact that Wall Street benchmarks finished down. Furthermore, US Treasury bond yields fell at the end of Thursday’s North American session, but the absence of Japanese traders’ limits bond market movements in Asia.
Looking forward, the UK Constriction PMI for April, as well as risk triggers. May entice GBPUSD speculators ahead of the crucial US employment report for April. estimates indicate a decrease in headline Nonfarm Payrolls (NFP) statistics to 179K from 236K before, which might send the gold price higher on marching estimates.
