Home›Forex›Major Pairs›Pound edges up versus dollar as UK jobs and CPI eyed

Pound edges up versus dollar as UK jobs and CPI eyed

GBP/USD at 1.3552, while Prime Terminal pricing shows about a 69% chance the Fed holds rates steady in September and 66% odds for a 25 basis-point hike in December.

Reported · Written up by our desk · Major Pairs

The British pound edged higher against the US dollar on Monday, with GBP/USD up about 0.14% to around 1.3552 after reaching a three month high near 1.3571, as traders weighed softer-than-expected US inflation and looked ahead to key UK jobs and CPI releases.

FXStreet said US Treasury yields have fallen since last week’s data, pointing to no clear expectation of a rate hike at the September meeting, according to Prime Terminal. Still, traders are watching for further shifts, with Prime Terminal indicating investors see nearly a 69% chance the Fed holds rates unchanged in September and about a 66% chance of a 25-basis-point hike in December.

On the UK calendar, investors are focused on labor and inflation prints, with expectations for the ILO unemployment rate to ease to 4.8% in the 3-month rolling average to June and the Claimant Count Change in July to rise from 6.7K to 11.2K. UK CPI is projected to increase to 0.3% month over month and 2.9% year over year, while core inflation is expected to tick down to 2.5% year over year.

The outlet also noted that geopolitical headlines involving Iran could influence currency moves via US yields, with the US Dollar Index slightly lower near 99.48 and GBP/USD holding a constructive near-term technical posture.

Latest closeGBP/USD 1.354 ▲0.3%|Dollar index 99.64 ▼0.3%

More like this

Sources