GBP/USD edges higher to near 1.3300, recovers due to weaker US Dollar
The post GBP/USD edges higher to near 1.3300, recovers due to weaker US Dollar appeared on BitcoinEthereumNews.com.
GBP/USD gains ground as the US Dollar remains under pressure amid persistent trade-related uncertainties. Washington may lean toward a weaker dollar to advance its trade objectives. The latest UK labor report suggested that employers scaled back hiring ahead of higher social security contributions effective from April. GBP/USD is rebounding from recent losses, trading near 1.3280 during the Asian session on Thursday. The pair is supported by a softer US Dollar (USD), as investors weigh ongoing trade-related uncertainties despite a slight easing in tensions. Market focus now shifts to the release of US Retail Sales and Producer Price Index (PPI) data later in the day. Speculation is building that Washington may prefer a weaker dollar to bolster its trade position. The Trump administration has argued that a strong Greenback, relative to weaker regional currencies, disadvantages US exporters. However, downside pressure on the USD may be limited. Improved global trade sentiment has eased recession concerns, reducing expectations for aggressive Federal Reserve (Fed) rate cuts. According to LSEG data, markets now price in a 74% chance of a 25-basis-point cut in September, down from earlier forecasts for a July cut. Meanwhile, the British Pound (GBP) holds steady as traders reassess the Bank of England’s (BoE) policy outlook following Tuesday’s labor market data for the three months ending March. The report showed slower job growth, a higher unemployment rate, and easing wage gains, suggesting that employers scaled back hiring ahead of higher social security contributions effective from April. Nonetheless, moderate wage growth may offer some relief to BoE policymakers. Wage trends remain a key indicator for inflation in the services sector, which continues to drive underlying UK price pressures. Pound Sterling FAQs The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It…
Filed under: News - @ May 15, 2025 3:16 am