- GBP / USD remains on track to close higher for the third day in a row.
- The US dollar index recovers modestly, remaining below 90.00.
- The upbeat UK labor market report helped sterling gain strength.
The pair GBP/USD it closed the first day of the week in positive territory and maintained its bullish momentum on Tuesday. However, after hitting its highest level since late February at 1.4220, the pair erased a portion of its daily gains and was last seen trading at 1.4188, where it was up 0.38% on the day.
GBP capitalizes on solid labor market data
Hours before, monthly data published by the Office for National Statistics (ONS) The UK showed that the unemployment rate fell to 4.8% in March from 4.9% in February. Additionally, the Change in Claimant Count reached -15,100 and was much better than the market expectation for an increase of 25,600. The upbeat UK jobs report helped the British pound outperform its rivals during European business hours.
Meanwhile, the dollar faced strong selling pressure amid the positive shift in market sentiment and the US dollar index (DXY) fell to a new 12-week low of 89.69. With the major Wall Street indices trading mixed, the DXY managed to make a modest recovery and is currently shedding 0.3% to 89.91.
On Wednesday, UK Consumer Price Index (CPI) data will be analyzed for fresh momentum. Later in the day, the FOMC will release the Minutes from its April policy meeting.
Technical levels
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