GBP/USD falls below 1,3400 waiting for the United Kingdom’s labor data

• The GBP/USD falls while the operators adopt caution before the United Kingdom employment data.
• The US dollar can be seen in the midst of the increase in probabilities that the Fed maintain its interest rates in July.
• The recent inflation data of the United Kingdom increases the possibilities of the BOE maintaining a restrictive monetary policy position.

The GBP/USD loses ground after registering profits in the previous session, quoting around 1,3390 during Thursday’s Asian hours. The operators are waiting for the United Kingdom Employment Report, which includes the change in the number of June applicants and the ILO unemployment rate for three months until May, which will be published later in the day.

The GBP/USD torque is depreciated as the US dollar (USD) gains ground due to the increase in probabilities that the Federal Reserve (FED) maintain its night reference interest rate without changes in the range of 4.25% -4.50% in its July policy meeting, driven by June inflation figures in the United States (USA) that were higher than expected.

The president of the Fed of Dallas, Lorie Logan, said Tuesday that the Fed will probably need to maintain interest rates where they are for a time to ensure that inflation is kept low in the rise of the upward pressure of the Trump administration tariffs. In addition, the president of the Fed in New York, John Williams, said at the end of Wednesday that monetary policy is in the right place to allow the Fed to monitor the economy before making its next decision.

The US Production Price Index (IPP) remained unexpectedly without changes in June, against the market consensus that expected an increase of 0.2%. Meanwhile, the underlying IPP increased a 2.6% year -on -year compared to the previous 3.0%, softer than the 2.7% expected. The operators will be attentive to US retail sales for June, followed by the initial weekly unemployment applications and the manufacturing index of the Philadelphia Fed that will be published later on Thursday.

The last Beige book of the Fed shows that, although the general business activity remains healthy and the inflation pressures are relatively moderate, the underlying cost pressures are increasing, and commercial operators remain cautious.

The negative side of the GBP/USD torque could be contained, since the inflation data of the United Kingdom higher than expected to reinforce the probability that the Bank of England (BOE) maintains a restrictive monetary policy stance. However, the BOE could adopt an act of balance by discussing interest rates at the August Monetary Policy meeting in the middle of the growing price pressure and labor market conditions.