GBP/USD holds steady around mid-1.2400s, traders seem non-committed on Fed uncertainty
The GBP/USD pair edges higher during the Asian session on Thursday, albeit remains well below the weekly top, around the 1.2500 psychological mark touched the previous day. The pair is currently placed just below mid-1.2400s, up less than 0.10% for the day, and draws support from subdued US Dollar (USD) price action.
The USD Index (DXY), which tracks the Greenback against a basket of currencies, continues with its struggle to gain any meaningful traction in the wake of the uncertainty over the Federal Reserve’s (Fed) next policy move. Last week’s dovish rhetoric by several Fed officials lifted bets for an imminent pause in the US central bank’s policy tightening cycle. Last week’s dovish rhetoric by several Fed officials lifted bets for an imminent pause in the US central bank’s policy tightening cycle. Read more…
GBP/USD bulls ignore mixed BoE clues to prod 1.2450 as June Fed rate hike appears elusive
GBP/USD buyers occupy driver’s seat around 1.2450, despite marking a slow run towards the north heading into Thursday’s London open. In doing so, the Cable pair buyers cheer the receding odds of a Fed rate hike in June while early signals for the Bank of England’s (BoE) interest rate guide appear mixed.
Earlier in the day, the UK’s Recruitment and Employment Confederation (REC) released a survey, funded by the global quant giant KPMG, saying that Britain’s labor market cooled further in May as starting salaries for permanent staff rose at the weakest pace in over two years. It should be noted that the recruiters included in the survey are the ones being closely watched by the Bank of England (BoE) and hence the results appear more important for the GBP/USD pair traders. Read more…