GBP/USD hovers around 1.2900, upside seems possible due to risk-on sentiment
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GBP/USD may extend its gains as improved risk sentiment could support the pair. The US Dollar weakened after disappointing US private payroll data heightened concerns over slowing US economic growth. BoE Governor Bailey called on the US to resolve its global economic concerns through dialogue rather than imposing import tariffs. GBP/USD edges lower after registering gains for the last three consecutive days, trading around 1.2890 during the Asian hours on Thursday. The US Dollar remains under pressure following weaker-than-expected US private payroll data, raising concerns about slowing economic momentum in the United States (US). Additionally, improved risk sentiment puts downward pressure on the Greenback, driven by another shift in US President Donald Trump’s tariff strategy. The ADP Employment Change report for February showed just 77K new jobs, significantly below the 140K forecast and well under March’s 186K reading. Market participants are now focused on Friday’s US Nonfarm Payrolls (NFP) report, which is expected to indicate a moderate recovery in job growth. Forecasts suggest net job additions will rise to 160K in February, up from January’s 143K. On Wednesday, the White House announced that Trump is temporarily exempting automakers from newly imposed 25% tariffs on Mexico and Canada for one month. Additionally, reports from Bloomberg suggest he is also considering excluding certain agricultural products from tariffs on these countries. In the United Kingdom (UK), Bank of England (BoE) Governor Andrew Bailey urged the United States on Wednesday to address its concerns about the global economy through dialogue rather than resorting to import tariffs, which were imposed this week by US President Donald Trump, according to Reuters. Meanwhile, while testifying before the Treasury Committee in parliament, BoE policymaker Megan Greene emphasized the importance of a cautious and gradual approach to easing monetary restrictions. Greene stated, “It’s likely inflation persistence will fade on…
Filed under: News - @ March 6, 2025 3:22 am