Sterling Swings On Mixed Jobs Data
London: 12 December 2023 (TraderMade): The GBPUSD pair navigates choppy waters, clinging to modest gains near the daily peak as investors await the crucial US Consumer Price Index (CPI) report. Declining bond yields and an optimistic risk appetite soften the US Dollar. Yet, the GBPUSD pair struggle to overcome the gravitational pull of mixed UK job data.
The GBPUSD pair rose by 0.12% to 1.25713 (at about 07:43 AM GMT).
Influencing factors
UK jobs data casts a shadow on the Pound's prospects. The market believes the Bank of England's rate hikes may be short-lived. The BoE may reverse course on rate hikes in 2024.
The US Dollar is under pressure from falling yields and fading safe-haven status. Investors expect the Fed to hold off on further rate hikes.
Ahead of the pivotal US inflation data release later today, the market participants remain cautious and hesitant to commit to a decisive direction for the GBPUSD pair. The market awaits crucial US inflation data and central bank meetings, like the Fed interest rate decision tomorrow (Wednesday) and the BoE interest rate decision on Thursday.
The mixed UK data and the uncertain future of monetary policy in both countries urge for prudence before anticipating an extended rally.
Stay tuned with GBPUSD Live Rates to make informed decisions.
