The pound sterling recovers land after the support of Starmer to Reeves as a chancellor for a longer time

• The sterling pound ranges in a narrow range around 1,3650 against the US dollar after falling 0.8% on Wednesday.
• Investors got out of the United Kingdom, including pound, amid political nerves around the United Kingdom Chancellor Rachel Reeves.
• The increase in the yields of the United Kingdom bonds due to greater social benefits has weighed on sterling pound.

The Pound sterling (GBP) moves up at about 1,3665 against the US dollar (USD) during Thursday’s European negotiation hours. The GBP/USD torque seems to have found a ground after Wednesday’s fall, in a wide sale of assets from the United Kingdom due to the growing doubts about the continuity of the Treasury Chancellor Rachel Reeves.

The pound, which fell more than 1% before cutting some losses, regained ground after Prime Minister Keir Starmer said that Reeves – who is seen by markets as a great defender of fiscal rules – would continue in his position.

Looking at the Economic calendarinvestors expect data from Non -agricultural payrolls (NFP) of the United States (USA) for June, which will be published at 12:30 GMT.

Investors will closely monitor US employment data since comments from some Fed officials, including the supervision vice president Michelle Bowman, have indicated an increase in the risks in the labor market.

“It’s time to consider adjusting the policy rate,” Bowman said in the last week of June and added, “we should put more weight on the downward risks for the labor market in the future.”

According to estimates, the US economy added 110k new workers, less than May 139k. It is estimated that the unemployment rate has accelerated to 4.3% since the previous reading of 4.2%.

Meanwhile, the average hourly gains data is expected to have a key measure of salary growth, have constantly grow 3.9% year -on -year. It is estimated that the intermensual salary growth measure has increased at a slower rate of 0.3%, compared to a 0.4% growth seen in May.

The signals of labor market conditions in deceleration would allow operators to increase bets in favor of early cuts of interest rates by the Fed. On the contrary, optimistic numbers would allow Fed officials more time to evaluate the impact of the new economic policies announced by the US president, Donald Trump, in the economy.

Daily summary of the market movements: the sterling pound is stabilized while the yields of the United Kingdom bonds go back

• The sterling pound strives to stabilize in front of its peers on Thursday after having had a lower performance in the first three days of negotiation of the week, after a strong increase in the yields of the United Kingdom Gilts.
• The yields of the 10 -year Gilts of the United Kingdom increased 17 basic points (PBS) or almost 4% to about 4.61% on Wednesday after Prime Minister Keir abstained to support the Treasury Chancellor, Rachel Reeves, until the next elections, after the announcement of an increase in the welfare schemes by the government. However, bond yield [la Canciller Reeves] He doesn’t go anywhere. “
• The PM of the United Kingdom, Starmer, declared in an interview with the BBC during the European negotiation hours that Reeves will be “Chancellor for a long time because this project in which we have been working to change the Labor Party, win the elections and change the country, is a project in which the Foreign Minister and I [Starmer] We have been working together. “
• According to new well -being reforms, Downing Street increased the standard allocation for universal credit (UC) to provide additional support to low -income households, which has entered into force this month. The Welfare Bill introduced in the House of the Commons this week has questioned the fiscal commitment of Foreign Minister Reeves after promising to cut benefits in the autumn declaration to strengthen the fiscal position of the country.
• The new well-being reforms are expected to annul the government’s plans to save 5.5 billion pounds by 2029-2030, which decided to collect through the reduction of the UC health element for new applicants, according to data from the Institute of Fiscal Studies of the United Kingdom (IFS).
• The highest indebtedness costs for the United Kingdom government at a time when the economy is struggling with the risk of a global commercial war have put into danger economic perspectives.
• In the front of the monetary policy, the person responsible for the Bank of England (BOE), Alan Taylor, has supported five trimmed cuts of interest this year compared to four as the market participants anticipate, citing economic risks downward in 2026 due to the weakness of the demand and commercial interruptions, while talking at the summit of the European Central Bank (ECB) in Sintra on Wednesday. Taylor was one of the three BOE officials who supported an interest rate cut at the June policy meeting.

Technical Analysis: The sterling pound maintains the 20 -day Ema

The sterling pound rises to about 1,3665 against the US dollar on Thursday before the US NFP data.

The 14 -day relative force (RSI) index falls below 60, suggesting that the bullish impulse has vanished.

Looking down, the psychological level of 1,3500 will act as a key support zone. On the positive side, the maximum of three and a half years around 1,3800 will act as a key barrier.