GBP/USD rises after UK employment grew in the three months to November

GBP/USD holds gains near 1.3450 ahead of UK CPI data

GBP/USD remains in the positive territory for the third consecutive session, trading around 1.3430 during the Asian hours on Wednesday. The pair rises as the Pound Sterling (GBP) gains support following Tuesday’s release of UK employment data for the three months to November. Employment increased by 82K after a 17K contraction in the previous period.

Meanwhile, Average Earnings excluding bonuses rose 4.5% YoY, while pay including bonuses increased 4.7%. However, the Unemployment Rate held steady at 5.1%, versus expectations of a 5.0% decline. Traders await the UK Consumer Price Index (CPI), Producer Price Index (PPI), and Retail Price Index data for December, which will be released later in the day. Read more…

GBP/USD steadies amid USD weakness, UK CPI inflation in focus

The British Pound (GBP) traded with a cautious tone on Tuesday as investors digested mixed UK labour market data. While unemployment held steady, slower wage growth dampened confidence and revived expectations that the Bank of England could move toward interest rate cuts later in the year. This tempered Sterling enthusiasm, particularly against European peers.

At the same time, broader market dynamics helped limit downside pressure on the Pound. Renewed geopolitical tensions and trade-related uncertainty weighed on global risk sentiment, pressuring US equities and weakening the US dollar. That USD softness provided an important counterbalance, allowing Sterling to remain supported despite domestic data concerns. Read more…

GBP/USD climbs toward 1.3460 as ‘Sell America’ trade gains momentum

GBP/USD posts a positive note on Tuesday as market participants continued to sell the US Dollar (USD) and most US assets, following President Donald Trump’s trade-war escalation with Europe. This, along with a sell-off in Japanese bonds, keeps the CBOE Volatility Index (VIX) at yearly highs, a sign of risk aversion. At the time of writing, the pair trades at 1.3463, up 0.30%.

Investors’ angst is at record highs after a Bloomberg headline read “Sudden Japan Bond Crash Unleashes Turmoil on Trading Floors.” The article mentioned that “concerns about Japan’s fiscal position, particularly Prime Minister Sanae Takaichi’s plans to cut taxes and boost spending, are raising doubts about the financial health of the government.” Read more…