- The GBP/USD fell below 1,3600, before recovering, despite a strong NFP report.
- The US economy added 149,000 jobs in June; The unemployment rate fell to 4.1%.
- The Fed is expected to keep the fees in July while the markets reduce cutting bets to 50 basic points.
The sterling pound remained stable against the US dollar on Thursday after a solid report of non -agricultural payrolls in the United States (USA) consolidated the case that the Federal Reserve would maintain the rates at the July meeting, since the unemployment rate decreased. At the time of writing, the GBP/USD quotes in 1,3634, practically unchanged.
Strong NFP and fall in unemployment in the US raised yields and dollar, while political nerves in the United Kingdom weigh on the pound
The US Labor Statistics Office (BLS) reported that the US economy added 149,000 people to the workforce, exceeding 110,000 estimates and May 144,000. The unemployment rate stood at 4.1%, down from 4.2%. The data reinforces the waiting position of the president of the FED, Jerome Powell, and evaluate the potential impact of tariffs on inflation.
Investors reacted to the data, reducing the bets that the Fed would cut the rates in 50 basic points (PBS) instead of the 65 pbs that were foreseen in early July. Consequently, the yields of the US Treasury bonds were shot, with the 10 -year bonus yielding 4,336%, an increase of five basic points, while the US dollar reached a maximum of four days, according to the index of the US dollar (DXY).
The DXY, which tracks the performance of the dollar against six other currencies, reached 97.42 before stabilizing around 97.10, registering profits of 0.34%.
Other data revealed that the initial unemployment applications for the week that ended on June 28 were less than the scheduled 240,000, standing at 233,000, below the previous reading reported. The Supply Management Institute (ISM) reported that the PMI of Services increased by 50.8, from 49.9 in May.
The cable was pressed by the strength of the dollar, but also by the uncertainty about the Minister of Finance of Great Britain, Rachel Reeves. The discussions in Parliament forced the Prime Minister, Keir Starmer, to refrain from significant cuts in spending, leaving a hole in public finances.
The fears that Reeves were replaced caused the yields of the Gilts to shoot more than 25 pbs, and the pound collapsed at least six days of 1,3562.
GBP/USD price forecast: Technical Perspectives
The GBP/USD fell below 1,3600 but so far has recovered its composure; However, it continues to lack the force to test the maximums of the week, about 1,3750 – 1,3790. The coup to the United Kingdom fiscal budget could make it difficult for buyers to challenge the annual maximums about 1,3800.
The support, on the other hand, is seen in the 20 -day SMA in 1,3610. A breakdown of this last will expose 1,3562; Below here is the 50 -day SMA in 1,3462.
LIBRA ESTERLINA PRICE THIS WEEK
The lower table shows the percentage of sterling pound (GBP) compared to the main currencies this week. Libra sterling was the strongest currency against pound sterling.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.26% | 0.43% | 0.43% | -0.88% | -0.48% | -0.16% | -0.41% | |
| EUR | 0.26% | 0.65% | 0.72% | -0.63% | -0.25% | 0.11% | -0.16% | |
| GBP | -0.43% | -0.65% | -0.16% | -1.27% | -0.90% | -0.56% | -0.81% | |
| JPY | -0.43% | -0.72% | 0.16% | -1.31% | -0.86% | -0.55% | -0.78% | |
| CAD | 0.88% | 0.63% | 1.27% | 1.31% | 0.34% | 0.72% | 0.48% | |
| Aud | 0.48% | 0.25% | 0.90% | 0.86% | -0.34% | 0.34% | 0.09% | |
| NZD | 0.16% | -0.11% | 0.56% | 0.55% | -0.72% | -0.34% | -0.24% | |
| CHF | 0.41% | 0.16% | 0.81% | 0.78% | -0.48% | -0.09% | 0.24% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the sterling pound from the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the GBP (base)/USD (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
