Pound Sterling faces pressure as soft UK labor market data paves way for BoE rate cuts
The Pound Sterling (GBP) trades with caution against its peers on Tuesday after the release of the United Kingdom (UK) labor market data for the three months ending March. The Office for National Statistics (ONS) reported that the ILO Unemployment Rate accelerated to 4.5%, as expected, from 4.4% in the three months ending February. In the same period, the economy added 112K fresh workers, significantly lower than the prior release of 206K.
Slowing UK job growth reflects the impact of the increase in employers’ contribution to social security schemes and caution among business owners in anticipation of tariffs by United States (US) President Donald Trump. The report didn’t capture any effects from the tariff reduction agreement between the US and the UK, as it was announced way after the collection of the data. Read more…
GBP/USD Forecast: Pound Sterling recovery could remain limited, eyes on US CPI
GBP/USD gains traction and trades in positive territory above 1.3200 in the European session on Tuesday, as markets adopt a cautious stance ahead of the key April inflation data from the US.
GBP/USD turned south in the European morning on Monday as the US Dollar (USD) gathered strength against its rivals. Following the first round of official talks in Switzerland, the US and China reached an agreement to pause and lower reciprocal tariffs, easing fears over a deepening trade conflict and boosting the USD. Read more…
