Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

Popular stocks

Crypto

CFD

Currencies

Support

Gold

Home » Markets News » GBP/USD Declines Amid Market Caution and UK Job Data Awaiting

GBP/USD Declines Amid Market Caution and UK Job Data Awaiting

  • November 12, 2024
  • 31

The GBP/USD pair has seen a continued decline, now trading near the 1.2840 level during the early trading hours in Europe. The U.S. dollar has shown resilience, partly due to recent trends linked to the Trump administration’s policies which have influenced market sentiment. Investors are keenly awaiting the release of UK employment statistics, scheduled for later today.

Last week, the Bank of England made a significant move by reducing interest rates by 25 basis points, lowering its key rate to 4.75%. The Governor of the Bank emphasized the necessity for a cautious and gradual approach to any future policy amendments, signalling a measured response to economic conditions.

The impending UK jobs data is anticipated to provide critical insights that could influence the Bank of England’s decisions during its December meeting. Analysts expect the unemployment rate to rise slightly to 4.1% for the three months ending September, compared to the previous rate of 4.0% observed in August.

Additionally, projections indicate that Average Earnings Excluding bonuses will grow by 4.7%, compared to a previous figure of 4.9%. For Average Earnings Including bonuses, a rise to 3.9% is anticipated, up from the prior 3.8%. A stronger than expected labor report could bolster Pound Sterling against the U.S. dollar, providing much-needed support.

On the other side of the Atlantic, potential policy proposals from the Trump administration, such as increased tariffs and tax cuts, could further elevate the U.S. dollar along with bond yields. As Federal Reserve officials maintain a cautious stance, traders will closely monitor upcoming reports, including the Consumer Price Index, Producer Price Index, and Retail Sales, for additional insights on the economic landscape.

This site is registered on wpml.org as a development site.