Greenback Positive, Pound Awaits Cues
London: 8 April 2024 (TraderMade): The US Dollar started the week on a positive note, holding onto gains made on Friday after a surprisingly strong US jobs report. This data, showing higher-than-expected hiring in March, has dampened speculation of the Federal Reserve cutting interest rates in June.
GBPUSD surged 0.11% to 1.2645 (Compared to Friday Close).
Dollar Buoyed by Strong US Jobs Data
The US Dollar Index (DXY) is hovering around 104.30, supported by Friday's Nonfarm Payrolls report, which revealed US employers added 303,000 new jobs in March. This figure exceeded expectations and cast doubt on earlier predictions of the Fed quickly lowering rates.
Market participants await Wednesday's US Consumer Price Index (CPI) data to gain further clarity on the Fed's monetary policy direction.
Pound Sterling Awaits Inflation Data Cues
The Pound Sterling (GBP) currently trades in a narrow range near 1.2600, awaiting the release of US inflation data. Strong BoE rate cut expectations, fueled by recent signs of easing inflation in the UK, are being challenged by the US Dollar's strength.
Friday's UK wage growth data, although high, showed some signs of slowing down, potentially bolstering the case for a BoE rate cut in June. However, the Pound's fate this week will likely hinge on how the US inflation data impacts expectations for Fed rate cuts.
